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How to Write a Business Plan for a Electrical Contractor

• September 14, 2022
• Small Businesses

Whether you’re looking to raise funding from private investors or to get a loan from a bank (like a SBA loan) for your electrical contractor company, you will need to prepare a solid business plan.

In this article we go through, step-by-step, all the different sections you need in the business plan of your electrical contractor business. Use this template to create a complete, clear and solid business plan that get you funded.

1. Electrical Business Executive Summary

The executive summary of a business plan gives a sneak peek of the information about your business plan to lenders and/or investors.

If the information you provide here is not concise, informative, and scannable, potential lenders and investors will lose interest.

Though the executive summary is the first and the most important section, it should normally be the last section you write because it will have the summary of different sections included in the entire plan.

Why do you need a business plan for an electrical business?

The purpose of a business plan is to secure funding through one of the following channels:

• Obtain bank financing or secure a loan from other lenders (such as a SBA loan )
• Obtain private investments from investment funds, angel investors, etc.
• Obtain a public or a private grant

How to write an executive summary for an electrical business?

Provide a precise and high-level summary of every section that you have included in the business plan of your electrical business. The information and the data you include in this segment should grab the attention of potential investors and lenders immediately.

Also make sure that the executive summary doesn’t exceed 2 pages in total: it’s supposed to be a summary for investors and lenders who don’t have time to scroll through 40-50 pages, so keep it short and brief.

The executive summary usually consists of 5 major sub-sections:

• Business overview : start by introducing your proposed electrical contracting firm, where it is located, the services you will offer, and the pricing strategy you want to implement. Mention what sets you apart from other businesses. For example, you may be a master electrician with a decade of experience in designing electrical systems.
• Market analysis : summarise the market where you will operate and provide a brief about your target market , target audience, spending capability, etc. Also give certain data points about the electrical contractor business industry in the area where you want to operate (size and growth), as well as an overview of the main competitors, etc.
• People : introduce your electrical business’ management and employee structure. Provide a brief (no more than a couple of sentences each) of the knowledge and experience of the team. Also, mention how the company will be structured (management roles and reporting lines)
• Financial plan: how much profit and revenue do you expect in the next 5 years? When will you reach the break-even point and start making profits? You can include here a chart with your key financials (revenue, gross profit, net profit )
• Funding ask : what loan/investment/grant are you seeking? How much do you need? How long will this last?

2. Electrical Business Overview

In this segment of the business plan, you will provide details about your proposed electrical contracting firm.

You must answer here some important questions that potential investors and lenders often ask about your business and operations. Here are some examples of questions you must answer:

• What is the rationale behind your opening an electrical contractor business today?
• In which location will you operate and why?
• What type of services will you offer?
• Are there specific types of services and/or industries that you specialize in?
• What will be your pricing strategy and why?
• What will be the legal structure of your company?

a) History of the Project

Any business overview must start with explaining the history of the project. There are 2 components here:

• Passion & experience of the business owner
• Rationale behind starting an electrical business today

Passion & experience

You must display your passion while at the same time, you must also showcase your experience. For instance, you may have 10 years of journeyman experience, or you may be a master electrician with the ability to design ground-breaking electrical systems.

Is there a certain problem (or perhaps, a set of problems) that your electrical contracting firm will try to solve when it comes into existence?

For example, there may be a steady increase in demand for commercial electrical contracting firms but there are only a few unorganized service providers incapable of efficiently handling commercial contracts.

The rationale behind your project must be backed up by a thorough analysis of the industry in the area where you plan to open your electrical contractor business. This is what we will cover under Market Overview further below.

b) Business Model

This section of the Business Overview should explain the model you want to adopt for your electrical contractor business. For example:

• Which target audience segment you will focus on and why?
• Is there enough demand for that segment in your focus area?
• What type of services you will offer?

What are the different types of e lectrical contractor companies?

You may choose one of the following:

• Residential Electrical Contractors: They usually collaborate with homeowners to design or install electrical systems
• Commercial Electrical Contractors : They usually focus on commercial and outdoor spaces like malls, shops, college campuses, gardens, parks, etc.
• Industrial Electrical Contractors : They usually focus on larger products like industrial manufacturing areas, warehouses, etc.

No matter what you select, you must ensure that there is enough demand for the type of electrical contracting firm you want to open and the range of services you will offer.

c) Services

The services you offer will depend on the type of customers you will serve and also on the skills you have. Provide a quick list of the major services that you will offer. Some services may include things like:

• Exterior and interior lighting
• Installation of safety systems & electronic appliances
• Electrical wiring and transmission line installation
• Repairs & upgrades, etc.

d) Pricing Strategy

This is where you will provide an overview of your pricing strategy. For instance, you may charge higher than your competitors because you may have a team of highly experienced electricians and also because you use high-quality wires and other materials than your competitors.

Similarly, you may decide to charge lower than your competitors because of the bulk purchase of products like wires, switches, etc., which allows you to bring down the cost of your services.

Whatever the case is, explain your pricing strategy and the logic behind it.

Pricing table

While it may not be possible to provide a proper pricing table for all services that you will offer, it is still a great idea to provide a table that gives an overview of your pricing structure.

Providing individual pricing for all services may not be possible, however, you may provide a range. For example:

• Smart systems installation: $75 to $150 per hour (depending on the system and area)
• Repair and upgrades: $80 to $120 per hour

However, don’t go into extreme details because potential investors are not interested in the nitty-gritty of your pricing. They just need the big picture to assess the profitability, because they will tie your pricing strategy with your financial projections later on.

e) Company Legal Structure

Finally, your business overview section should specify what type of business structure you want. Is this a corporation or a partnership (LLC)? Who are the investors? How much equity percentage do they own? Is there a Board of Directors? If so, whom? Do they have experience in the industry?

3. Electrical Business Market Overview

A complete understanding of the market where you want to operate is important for the success of your business. That’s also something you must showcase in your business plan.

For example, if there is a high demand for residential and commercial electrical contractors but you want to focus on industrial customers despite a very small market size , it may not be a great business decision.

Therefore, you must cover here 3 important areas:

• Market size & growth : how big is the electrical contractor business industry in your area? What is its growth rate (or decline rate) and what are the factors contributing to its growth or decline?
• Competition overview : how many competitors are there? What type of customers do they serve? What type of projects do they specialize in? How do they compare vs. your business? How can you differentiate yourself from them?
• Customer analysis : who is your target audience? How frequently do they require electrical contractor services? What is their yearly spending on electrical contractor services?

a) Electrical Contractor Industry Size & Growth

How big is the electrical contractor industry in the us.

In 2021 there were over 70,000 electrical contracting firms in the US employing about 650,000 electrical workers.

As per the National Electrical Contractors Association (NECA) the industry is worth $202 billion: that’s an average annual turnover of $2,800,000 per company! 

Also, the vast majority of electrical contractors are small businesses: over 80% of all businesses had less than 10 employees.

How big is the electrical contractor industry in your area?

After getting a clear picture of the electrical contractor business industry in the US as a whole, narrow down to your location. It’s very likely that you won’t find the number anywhere (at least not for free).

In that case, you can use our guide to estimate the TAM, SAM, and SOM for your business. Here is an example of how to do it:

We already know that the average annual turnover for electrical contracting firms in the US is $2.8 million. Therefore, if the area where you will operate (a city for example) has a total of 30 electrical contractors, the electrical service industry in the area is worth approximately $84 million.

What’s the market growth of the electrical contractor industry in your area?

Next on our list is market growth: is the industry growing or declining in your area?

US market growth can be a great addition to your business plan, yet it doesn’t necessarily help to assess the industry in your area of service. For example, the industry might be growing in the US, but declining in your region for a number of reasons (for example, the large commercial market may be contracting because businesses are shutting down due to losses, resulting in the closure of electrical contractor businesses that focused on the commercial market).

As you likely won’t find this information online, you can instead rely on the number of electrical contractor businesses in the location to calculate the average growth rate of the industry in your area.

For example, if the region had only 27 electrical contractor businesses in 2019 and 30 in 2021, you can assume that the average annual growth rate of the electrical contractor businesses industry in the area is around 5-6%.

b) Competition Overview

Studying your competitors’ business models is vital. You need to understand what makes them successful or why they fail. A clear understanding of their business model, the products they sell, their marketing strategies, etc., will allow you to provide a better service.

If your competitors are offering nearly the same services, then what is their market share and how do they market their products & services to attract new customers?

It is always a good idea to do some research (if necessary, you may consider physically visiting your competitors without revealing your business intentions) and create a comparative table summarizing their service offerings, marketing strategies, target audience, etc.

Here is a sample table that you can use:

Electrical Business SWOT Analysis

SWOT stands for Strength, Weakness, Opportunities, and Threats. This analysis will help lenders and investors better understand how you compare vs. competitors as well as the overall risk and reward profile of your business.

Here is a sample that you can use as a reference:

• Strengths : 12 years of experience as a master electrician in a popular electrical contractor company
• Weaknesses : Startup cost, no initial brand reputation
• Increased construction of residential apartments due to demand spike in rental housing and builders are looking for skilled electricians for wiring everything (backup with data for population and real estate boom)
• Growth in retail stores and malls (because of population influx), which in turn has increased the demand for electricians for installation and maintenance (provide data)
• Increased commercial warehouse construction because of increased regional distribution centers by e-commerce retailers that require electrical installations (provide data and explain why there is an increase in commercial warehouse construction – for example, increased demand and hence imports of cheaper products)
• Threats : Big brands like Helix Electric, Bergelectric, & Cupertino Electric, Inc. are all eyeing the growing market

c) Customer Analysis

Finally, we need to look at your customers.

However, the first thing you must do is clearly define the target audience. For instance, you may serve individual households, commercial establishments, or even industrial establishments.

Some important points that you must include in your customer analysis include:

• How much do your target customers spend on electrical services per year?
• How frequently do they need electrical contractors?
• What type of electrical services do they usually require (fresh installations, inspections, repairs, etc.)?
• What type of electrical contractors do they usually hire (big brands, small contractors, individual electricians, etc.)?
• What do they dislike about the existing electrical contractors in the area (for example, slow response time)?

4. Sales & Marketing Strategy

This is the section where you outline your customer acquisition strategy. Try to answer here the following questions:

What is your Unique Selling Proposition (USP)?

• What are the different marketing strategies you will use?
• How do you intend to track the success of your marketing strategy ?
• What is your CAC or customer acquisition cost?
• What is your marketing budget?
• What introductory promos and offers do you intend to provide for attracting new customers?
• What marketing channels do electrical businesses use?

What marketing strategies do electrical contractors use?

A few marketing channels that electrical businesses typically use are:

• Signages, vehicle branding
• PPC ads (Google local services ads)
• Social media platforms
• Flyers & pamphlets
• Word of mouth, recommendations

It is not necessary to use all channels. Instead, you can start by focusing on a few of them, and include other marketing strategies later.

In other words, how do you differentiate yourself vs. competitors? This is very important as you might need to win customers from competitors.

A few examples of USPs are:

• Response Time : you may respond within 30 minutes (whatever you can commit to), which is faster than any competitor 
• Emergencies : you may have years of experience dealing with electrical emergencies that can potentially cause immense damage to life and property
• Free inspection : you may offer one free inspection of wiring and other installations once every quarter

Your USP will depend on your business model, competitor analysis , and target audience. Whatever your USP be, it should be clear and appealing to your target audience.

5. Management & People

You must address two things here:

• The management team and their experience
• The organization structure : different team members and who reports to whom?

Small businesses often fail because of managerial weaknesses. Thus, having a strong management team is vital. Highlight the experience and education of senior managers that you intend to hire to oversee your electrical business.

Describe their duties, responsibilities, and roles. Also, highlight their previous experience and explain how they succeeded in their previous roles.

It is also important that you explain how their experiences and qualifications help you in implementing the electrical business you are proposing. If they have specialized training and experience (master electrician or journeyman electrician for 8 years in a reputed electrical contractor firm), add that information.

Organization Structure

Even if you haven’t already hired electricians, trainees, managers, drivers, accountants, and other relevant staff members, you must provide a flowchart of the organizational structure defining hierarchy and reporting lines.

6. Financial Plan

The financial plan is perhaps, with the executive summary, the most important section of any business plan for an electrical contractor company.

Indeed, a solid financial plan tells lenders that your business is viable and can repay the loan you need from them. If you’re looking to raise equity from private investors, a solid financial plan will prove them your electrical contractor company is an attractive investment.

There should be 2 sections to your financial plan section:

• The startup costs of your company
• The 5-year financial projections

a) Startup Costs

Before we expand on 5-year financial projections in the following section, it’s always best practice to start with listing the startup costs of your project.

For an electrical contractor company, startup costs are all the expenses you incur before you start making sales. These expenses typically are limited especially for small businesses and include:

• The lease deposit (if you rent an office and/or warehouse for your equipment)
• Electrical equipment, tools, etc.
• License & permits, business insurance, etc.

Of course, the startup costs depend on a number of factors, like the size of your business (employees), the services you plan to offer (which will dictate what equipment you may need), etc.

b) Financial Projections

In addition to startup costs, you will also need to build a solid 5-year financial model in the business plan of your electrical company.

Note that your financial projections should be built using a spreadsheet (e.g. Excel or Google Sheets) and presented in the form of tables and charts in your business plan.

As usual, keep it concise here and save details (for example detailed financial statements, financial metrics, key assumptions used for the projections) for the appendix instead.

Your financial projections should answer at least the following questions:

• How much revenue do you expect to generate over the next 5 years?
• When do you expect to break even?
• How much cash will you burn until you get there?
• What’s the impact of a change in pricing (say 10%) on your margins?
• What is your average customer acquisition cost?

You should include here your 3 financial statements (income statement, balance sheet and cash flow statement). This means you must forecast:

• The number of contracts (customers) over time ;
• Your expected revenue ;
• Operating costs to run the business ;
• Capex (cost to buy the equipment and vehicles, etc.)

When projecting your financials, make sure to sensitize sales volume (customers), pricing as well as the expenses (inventory, salaries, etc.). Indeed, a small change in these assumptions may have a significant impact on your revenues, and most importantly, your profits.

7. Use of Funds

This is the last section of the business plan of your electrical contractor company. Now that we have explained what your business model is, what type of services you offer, how you get customers, etc., this section must now answer the following questions:

• How much funding do you need?
• What financial instrument(s) do you need: is this equity or debt, or even a free-money public grant?
• How long will this funding last?
• Where else does the money come from? If you apply for a SBA loan for example, where does the other part of the investment come from (your own capital, private investors?)

If you raise debt:

• What percentage of the total funding the loan represents?
• What is the corresponding Debt Service Coverage Ratio ?

If you raise equity

• What percentage ownership are you selling as part of this funding round?
• What is the corresponding valuation of your business?

Use of Funds

Any business plan for an electrical contractor company should include a clear use of funds section. This is where you explain how the money will be spent.

Will you spend most of the loan / investment in paying your employees’ salaries and the COGS (inventory)? Or will it cover mostly the cost for acquiring the equipment and machines?

For the use of funds, we also recommend using a pie chart like the one we have in our financial model template where we outline the main expenses categories as shown below.

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How To Write an Electrical Contracting Business Plan

Kat Boogaard

If you’re ready to take the leap into business ownership, we’ll help you to get started with researching your electrical contractor business target market. With that information in your back pocket, you’ll be ready to dive into business planning and then launch your new contracting company.

Getting Started with Your Business Plan

You’ve been mulling over your business ideas for a while and now it’s time to make it happen. The word “startup” may give you mental images of Silicon Valley, but every business has to begin somewhere and yours is no exception. 

As an electrical contractor, you understand that frameworks are the only way to make a project successful, so think of your business plan as the blueprint that you’ll be working from as you prepare to launch and grow. 

There are plenty of business plan templates out there so that you don’t have to start from scratch, but we’re going to run through a few key areas that you’ll want to include in your research and planning stages. Below, we’ll cover a few nuts and bolts business plan sections: 

• Competitive analysis
• SWOT analysis
• Target market research
• Financing and cash flow

Sound overwhelming? It doesn’t need to be. Let’s walk through the details of each of these. 

Electrical Contracting Competitors

You need to know who else is operating in your space to plan how you’re going to stand out from the crowd. 

It’s likely that you already have an extensive network of fellow electrical contractors like other electricians, subcontractors, project managers, and general contracting firms in the local area. Take a look at their websites and research the services they offer to their clients. 

Is there a gap in your local market for residential or commercial services that your new business could fill? What do their customer reviews say? By knowing what your competition looks like, you can make informed decisions about the type of business you want to run and how your unique offers could attract potential customers.

SWOT Analysis

SWOT is an acronym that stands for strengths, opportunities, weaknesses, and threats. This type of analysis is an important part of the business planning process. 

Like with your competitor research (which can be used to make up the “threats” part of this analysis), this is where you’ll have the opportunity to jot down what you do well, where you need to improve, and what opportunities there are in your market that you could leverage. 

You’ll also want to think about the type of business structure you want to have at this stage. You can change this later on if you need to, but mapping out your vision for the future of your business now can help you to save time down the road.

While this is definitely an aspect to consider before you launch, a SWOT analysis is something that you should be working on as the business owner at least twice a year, if not quarterly. If this is the first time you’ve ever worked on one, you can find templates online to help you get started.

Target Market Research

To build a successful electrical business, you need to know what your target market looks like. As an electrician, you’ve likely worked with a range of customers across all kinds of projects, but now that you’re running your own business , you need to decide who exactly you want to serve. 

Research your service area and what the demographics look like—is it mainly commercial businesses who might need ongoing electrical work like electrical systems maintenance, or are there a large number of homeowners that could be looking for residential electrical services in your community? Is there a contracting company that’s building a new development nearby that could be looking to hire an electrician for multiple HVAC or electrical installations on their new properties?

Finding new clients to provide you and your team with consistent work is one of the biggest challenges of entrepreneurship, but doing your research ahead of time will help you to build out your new business in a way that works for both you and your potential customers.

Financing and Cash Flow

You can’t get a business off the ground without funding! Understanding your cash flow and bottom line, both ahead of launching and during the day-to-day operations of your electrical contractor business, is vital in ensuring that your business will survive. 

As most electrical contractors use equipment supplied by their company, you may not have much of your own to get started. If you’re hiring a team, you’ll also be responsible for supplying them with everything they might need on a jobsite, along with any necessary insurance , including workers’ comp . 

Your costs are going to vary greatly, but here’s a rough estimate for each of these items:

• Liability insurance : $600 per year
• Equipment: $1,000-$5,000 depending on what you need
• Employees or subcontractors: $15-$100 per hour
• Workers’ comp insurance : This one’s a little trickier, since rates vary so much depending on location, payroll amount, classification of workers, and your prior injury history. Use this formula to estimate the workers' comp rate for each employee you hire:

(Employee Gross Salary x Workers' Comp Insurance Rate)/$100 = Annual Rate

To get you up and running, you might be considering taking a small business loan. The U.S. Small Business Administration , or SBA, is a great resource for helping you find loan providers that make sense for your situation. You could also be a candidate for small business grants , which are worth looking into when you’re getting started. 

Pricing your services correctly will also be important, and this is where your competitor analysis can come in handy. See what the average rates are for electrical contractors in your service area (Indeed reports that electrical contractors earn an average of $23.22 per hour ), but also consider what kind of profit margin you want to make after you’ve run payroll, paid back any loans, and settled outstanding bills. This will be one of the most important parts of your business plan, so be sure to take enough time to work on this before you open your business to the public.

Marketing Strategies for Your Electrical Contracting Business

You’ve got your business mapped out on paper and fully funded, but now you need to let the world know that your new electrical company is ready to start working! That’s where your marketing plan comes in. It’s one thing to understand exactly who your target audience is, but it’s another to have a plan in place for how you’re going to reach them.

Marketing strategies don’t have to be complicated and can be broken down into three distinct categories–digital, traditional, and referrals.

Digital Marketing

For many of your customers, the first place that they’ll go when searching for an electrical company is Google. When they do, you want your website to be one of the first results that they find. 

One of the best methods to do this is to use a strategy called search engine optimization, or SEO. It may seem overwhelming at first but there are plenty of small tweaks that you can make to your website that can hugely improve your visibility online—such as using clear and intuitive headings on your webpages (like “California Electrical Contractor”). 

Setting up a Google My Business profile will also be useful. This will help your business show up in Google Maps listings, as well as make your phone number, and open hours easily accessible for any potential customers.

Using social media to connect with your market is also a helpful digital marketing strategy. You might consider hiring a freelancer to help create your social media content and manage your online communities, particularly when you first launch, as this can be a significant amount of work to manage alongside your other responsibilities as the business owner.

Traditional Marketing

It’s easy to think that everyone is online these days but, particularly if you work with residential customers, you’ll find that certain demographics may not have the access or inclination to use digital communications. 

Leaving business cards at other local businesses or with a customer after a job is completed is still a great way to get your name out there and keep your business top-of-mind when someone needs an electrical company. 

Direct mail pieces that can be delivered throughout your service areas can also be helpful in letting the local community know that your new business is in town and ready to take on new projects.

Referrals and Word of Mouth

One of the best ways that small businesses can grow is through word-of-mouth referrals from previous and existing customers. After all, they have first-hand experience of working with you and can give potential customers an idea of what your quality of work is really like.

If you can, gather testimonials and reviews from clients as soon as you finish a job with them. Encourage them to leave a review on your Google My Business profile (that’s great for your SEO too!) that you can then reuse on your own website and post on social media. Make the customer experience excellent from beginning to end and you’ll start to see those five-star reviews coming in in no time.

Launching and Growing Your Electrical Contracting Business

You planned carefully and now your business is thriving. At this point, you might be thinking about hiring some electrical contractor employees. 

Your first hires will probably be more experienced workers like a master electrician, journeyman, or estimator. These individuals have been in the electrical construction industry for a while and know how to work independently on a jobsite. But you should also consider how you can support the future of the industry.

Apprenticeships and training programs require hands-on experience and someone has to be willing to give these up-and-comers a chance. As the business owner, you have decision making authority to bring in new trainees during the early years of their career and mold them into dream employees. Not only are you helping to keep your industry a thriving career prospect, but you’re also ensuring the future stability and growth of your new business.

Running A Successful Electrical Contracting Business

Owning and running a business full-time is hard work, but it’s also incredibly rewarding. 

A firm business plan will help you stay on top of the many moving pieces that make up your new venture, while giving you the opportunity to understand your market and competition in a way that pushes you toward your success.

‍Becoming a business owner is a lifelong dream for many people. If you have the entrepreneurial bug and an interest in construction , starting your own electrical contracting business could be the right move for you. 

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Electrical Contractor Business Plan Template

Written by Dave Lavinsky

Electrical Contractor Business Plan

You’ve come to the right place to create your Electrical Contractor business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Electrical Contractor companies.

Below is a template to help you create each section of your Electrical Contractor business plan.

Executive Summary

Business overview.

Oak City Electric, located in Raleigh, NC, is a newly established family owned and operated electrical contracting company. The company provides electrical contracting services to the local metropolitan area and its surrounding communities. With an emphasis on customer service and rapid response time, Oak City Electric is set to establish itself as one of Raleigh’s most trusted and reliable electrical contractors.

Oak City Electric was founded by Randy Wallace. Randy Wallace has been an electrician in the community for over 40 years. Although he has worked for several local competitors, Randy Wallace has always wanted to own and operate his own electrical contracting company. He finally saved up enough money and built up a large enough client base to make his dream come true. Randy’s education, experience, and skill set will quickly make Oak City Electric the #1 electrical contracting company in the area.

Product Offering

Oak City Electric will provide a variety of different electrical contractor services. These services include:

• Residential Electrical
• Commercial Electrical
• Industrial Electrical
• Safety Inspections
• Fixture, Smoke Detector, And Carbon Monoxide Detector Installation
• Smart Home Installation
• Security Systems
• Home Theater Installation
• Camera Systems

Pricing for all services will vary depending on the complexity and size of the project.

Customer Focus

Oak City Electric will primarily serve the residents living within Raleigh, NC, and the surrounding areas. About 51% of the city owns their own homes and will likely need electrical work at some point. There are also thousands of businesses in the area and over 1 million square feet of industrial/warehouse space. Many of the city’s residents and businesses are underserved when it comes to electrical services, so our services will be in high demand.

Management Team

Oak City Electric is led by Randy Wallace, a local electrician who has worked for the largest electrical contractor companies in Raleigh for over 40 years. Randy Wallace is fully licensed and bonded and has gained an impressive reputation as the most reliable and trustworthy electrician in the market. As a project manager that oversaw hundreds of projects, Randy has the proper knowledge and experience to own, manage, and operate his own electrical contracting company. He also has built a loyal client base, with many clients promising to use his services once the company is fully running.

Success Factors

Oak City Electric will be able to achieve success by offering the following competitive advantages:

• Technology: Oak City Electric will be able to provide the latest advancements in electrical contracting.
• Price: Oak City Electric is able to offer their services at the best and most competitive price.
• Community Relations: Oak City Electric will be a pillar in the community and be heavily involved in family-related activities in the area. It will sponsor events and provide free electrical services (for small jobs) to non-profit organizations and area schools.
• Highly Trained and Experienced Staff: Oak City Electric will be led by Randy Wallace who has decades of experience as an electrician and project manager.

Financial Highlights

Oak City Electric is seeking $400,000 in debt financing to launch. The funding will be dedicated to securing office space and build-out and purchasing the necessary equipment and tools. Funding will also be dedicated toward three months of overhead costs, including payroll, rent, and marketing costs. The breakout of the funding is below:

• Office space build-out: $100,000
• Equipment, tools, and supplies: $50,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $50,000
• Working capital: $50,000

Company Overview

Who is oak city electric.

Randy Wallace has saved his wages for the necessary down payment to receive local bank financing. He has also located a prime spot for the lease of the company headquarters where the equipment and vehicles will be kept. Due to his experience and reputation in the electrical contractor industry, Randy has been able to receive written commitments from large development companies in Raleigh for them to be the preferred electrical subcontractor for their upcoming projects.

Oak City Electric’s History

Once his market analysis was complete, Randy began surveying the area for an available office space with plenty of surface parking to house the company’s large fleet of vans and trucks. Randy incorporated Oak City Electric as a Limited Liability Corporation in April 2023.

Once the lease is acquired for the space, light construction can begin to build out the company’s headquarters and small office.

Since incorporation, the Company has achieved the following milestones:

• Located an office space that would be ideal for the company
• Developed the company’s name, logo, and website
• Hired a general contractor for the build-out of the warehouse, small office, and parking area
• Determined equipment and necessary supplies
• Determined how many vehicles necessary for the fleet
• Began recruiting key employees

Oak City Electric’s Services

Industry analysis.

The electrical contractors industry has had healthy revenue growth over the last five years. This is mostly due to the increase in new construction activity and an uptick in renovations. Demand for nonresidential and residential construction projects is high, primarily due to low interest rates and access to credit. In addition to growing per capita disposable income and corporate profit, rising demand for construction projects requiring electrical work has boosted demand for industry services from corporations and individuals alike.

Over the next five years , industry revenue is expected to grow at a faster rate, largely as a result of pent-up demand. As the economy booms, the value of nonresidential construction and per capita disposable income are both anticipated to increase and contribute to industry revenue growth. In addition, the industry is projected to benefit from continued renovation and retrofitting activity, particularly green upgrades, such as energy-efficiency projects and smart home technologies. According to Arizton, these factors are expected to help boost the electrical contractor industry by a CAGR of 3.94% from now until 2028. Therefore, this is the perfect time to establish a new electric contracting company as there is a great demand for these services.

Customer Analysis

Demographic profile of target market.

Oak City Electric will serve the community residents of Raleigh, NC, and its surrounding areas.

The community of Raleigh has thousands of single family homes that will likely require electrical work. There are also a number of businesses and industrial parks that require regular lighting and other electrical services.

The demographics of the area in which we will operate are as follows:

Customer Segmentation

The Company will primarily target the following three customer segments:

• Contractors

Competitive Analysis

Direct and indirect competitors.

Oak City Electric will face competition from other companies with similar business profiles. A description of each competitor company is below.

Wallmore Electrical Contractors

Established in 1977, Wallmore is Raleigh’s largest and most requested electrical contractor. The company has grown itself to be the premier electrical contractor as it has completed dozens of projects over the years and has grown its workforce to over 100 employees and electricians.

The company was formed as a small family company and later acquired another electrical company in the area to allow itself to grow and add more services. They also have a very capable fleet of vans and trucks that are able to travel not just around the city, but across the state as well.

The company specializes in electrical lighting systems, such as LED retrofit, residential, commercial, industrial, and landscape lighting. They are also a preferred subcontractor to numerous large general contractors to complete their electrical projects for them. The projects range in size from residential developments to commercial remodeling and warehouse improvements.

We-Do-It-All Electrical & Mechanical Contractors

We-Do-It-All Electrical & Mechanical Contractors offers a complete electrical company to commercial industrial customers. The company offers a quick response to proposals and system installation services. Their team of well-trained and experienced electricians are capable of performing complicated projects with precision under tight time constraints.

The company has a lead industrial electrical contractor and commercial electrician that provides the design and implementation that is required for the project. He focuses on communicating with the client through the entire process; from initial planning and design to final implementation and testing. We-Do-It-All also places an emphasis on safety as they offer incentives for safe performance for all of their licensed electricians on staff.

Gamma Ray Electrical & Mechanical Contractors

Gamma Ray is an HVAC contractor that provides all electrical and mechanical services for any and all projects. The Gamma Ray electrical and mechanical team includes proficient electricians that are able to fix any electrical issue that can be found in the client’s living room, kitchen, or fuse box. The company’s electrical contractor services are open to both commercial and residential clients and can handle everything from troubleshooting to installing electrical systems for commercial buildings.

Gamma Ray’s complete list of electrical services include troubleshooting, infrared electrical testing, hookup and power supply, lighting and security lighting, wiring and connections, energy-use evaluation, 24-hour emergency services, preventive maintenance, electrical installation, diagnosis repair, updates and maintenance, equipment power supply, generator installation, electrical panel upgrades, and circuit installation.

Competitive Advantage

Oak City Electric enjoys several advantages over its competitors. These advantages include:

Marketing Plan

Brand & value proposition.

Oak City Electric seeks to position itself as a respectable, upper-middle-market competitor in the electrical contracting market. Customers can expect high-quality electrical work and customer service.

The Oak City Electric brand will focus on the company’s unique value proposition:

• Complete list of electrical services
• Licensed with the latest technology
• Highly trained and capable staff of electricians
• Large fleet of vehicles that is ready to be dispatched at a moment’s notice 24/7
• Affordable pricing

Promotions Strategy

The promotions strategy for Oak City Electric is as follows:

Website/SEO  

Oak City Electric will invest heavily in developing a professional website that displays all of the services the company will be able to provide. It will also invest heavily in SEO so that the brand’s website will appear at the top of search engine results.

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content, such as educational content about electrical work and about the services the Company offers.

Word of Mouth Marketing

Oak City Electric will encourage word-of-mouth marketing from loyal and satisfied clients. The company will use recommendations and word-of-mouth marketing to grow its customer base through the network of its existing customers. The company will incentivize its existing customer base to encourage friends to call Oak City Electric to help them with all their electrical needs.

Special Offers

Offers and incentives are an excellent approach to assisting businesses in replenishing the churn in their customer base that they lose each year. The company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.

Oak City Electric’s pricing will be moderate so clients feel they receive great value when utilizing the company’s electrical contracting services.

Operations Plan

Operation Functions:

The following will be the operations plan for Oak City Electric.

• Randy Wallace will be the Owner, President, and Manager of Oak City Electric. He will be in charge of the general operations of the company. He will also provide customer service and provide electrical work for his customers until he hires a large staff of electrical contractors.
• He is assisted by his long-time friend, Jack Taylor, who will be the Vice President of the company. He will assist with the marketing and administrative aspects of the business.
• Randy will also hire several electrical contractors to provide electrical services to his long list of clients.

Milestones:

Oak City Electric expects to achieve the following milestones in the following months:

• 7/202X Finalize lease agreement
• 8/202X Design and build out
• 9/202X Hire and train initial staff
• 10/202X Kickoff of promotional campaign
• 11/202X Launch Oak City Electric
• 12/202X Reach break-even

Financial Plan

Key revenue & costs.

Oak City Electric’s revenues will come primarily from its electrical contracting services. The company will provide a range of electrical contracting services to the community and its surrounding areas. As the company’s revenues increase, it will look to gain a wider distribution area.

The warehouse lease, equipment, supplies, fleet of vehicles, and labor expenses will be the key cost drivers of Oak City Electric. Ongoing marketing expenditures are also notable cost drivers for Oak City Electric.

Funding Requirements and Use of Funds

Key assumptions.

Below are the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Monthly rent: $1,500

Financial Projections

Income statement, balance sheet, cash flow statement, electrical contractor business plan faqs, what is an electrical contractor business plan.

An electrical contractor business plan is a plan to start and/or grow your electrical contractor business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Electrical Contractor business plan using our Electrical Contractor Business Plan Template here .

What are the Main Types of Electrical Contractor Businesses?

There are a number of different kinds of electrical contractor businesses , some examples include: Commercial Electrical Contractor, Residential Electrical Contractor, and Industrial Electrical Contractor.

How Do You Get Funding for Your Electrical Contractor Business Plan?

Electrical Contractor businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an Electrical Contractor Business?

Starting an electrical contractor business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Electrical Contractor Business Plan - The first step in starting a business is to create a detailed electrical contractor business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your electrical contractor business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your electrical contractor business is in compliance with local laws.

3. Register Your Electrical Contractor Business - Once you have chosen a legal structure, the next step is to register your electrical contractor business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your electrical contractor business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Electrical Contractor Equipment & Supplies - In order to start your electrical contractor business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your electrical contractor business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful electrical contractor business:

• How to Start an Electrical Business

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Electrical Contractor Business Plan [& Free Template]

Whether you’re a new electrical contractor launching your startup business or a veteran electrician looking to expand , define business goals, or obtain funding, you need a business plan. And if you created a business plan when you first started in the industry, but haven’t updated it since, it’s time for a revamp. 

Ready to write or improve your electrical business plan? Read on for information on what to include in an electrician business plan and a free electrical contractor business plan template to get started. 

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What Is a Business Plan for Electrical Contractors?

A business plan is a comprehensive document that outlines the company’s operations, goals, strategies, and financial projections. It serves as a roadmap for the business owner and potential stakeholders by detailing how the business will be structured, managed, and grown. 

A business plan is a fluid document that should be reviewed and refined annually to reflect goals that have been met or have changed. If an established business decides to move in a new direction, perhaps adding services or acquiring a smaller electrical outfit and expanding their service areas, they may create a new business plan.

Why Do Electrical Contractors Need a Business Plan?

In addition to serving as a roadmap for the company, electrical contractors need a business plan for the following reasons.

Reason #1: Raise Funding

New or expanding businesses often need to raise capital from lenders or investors. Before investing or providing a loan, lenders and investors want to see a detailed plan that demonstrates the company’s potential for success and how it intends to use the funds. Lenders want to know the company will be solvent enough to make regular debt payments.

The main sources of funding for an electrical business include personal funds, credit cards, bank loans, and investors. Personal savings and bank loans are the most common funding paths for electrical companies.

Reason #2: Define Business Goals and Reduce Risks

A business plan serves as your company’s blueprint. By setting up goals and ways to measure success, you’ll know if your business is on track. Your business plan should also outline risks, including competitors and market changes. By knowing business threats ahead of time, you can prepare plans for reducing or addressing them.

When it comes to measuring goals, a field management software with reporting capabilities provides the data electrical companies need to make informed business decisions. For example, ServiceTitan’s field reporting software offers a dynamic dashboard that allows business owners to customize the fields to display KPIs that matter most to them, including revenue, missed opportunities, and conversion rates.

The technician scorecard gives managers a report on overall technician performance, as well as the opportunity to drill down into metrics for each individual tech, including generated revenue, memberships sold, customer satisfaction, and billing efficiency. With this information in hand, managers can reward outstanding technician performance and find coaching opportunities.

Similarly, a CSR scorecard allows users to review incoming calls, conversions, and other CSR metrics as clients and potential customers call your business. The recorded calls can be used for CSR training or to re-engage with missed opportunities.  

How to Write an Electrical Contractor Business Plan [with Template]

An electrical contractor business plan should be tailored to the specific goals of your business and provide a realistic and achievable roadmap for its success. To help electricians know exactly what information to include in a business plan, ServiceTitan created an electrical company business plan template for you to download and fill in.

>> Download our free electrical business plan template. Save the PDF to your desktop as a new file. From there, you can customize it for your business.

Ready to get started? Include the following sections in your electrical business plan.

1. Industry Analysis

First, provide an overview of the electrical contracting industry. This market research should inform your business strategy. It also shows investors and lenders you did your due diligence. When preparing this section, consider:

Market strength

Market size

Competitors

Industry trends

2. Executive Summary

The executive summary is a condensed version of your full business plan where you include everything you would cover in a five-minute sales pitch about your business. Put simply, all the hard work and research you put into your business plan should inform the critical information you include in the executive summary. Even though this is in the front of the business plan, it’s best to complete this section last. 

Use the executive summary to concisely explain the fundamentals of the business. For example, what is your product or service? Who are your customers? Who are the business owners and financial investors? What are your goals and objectives?

If you’re applying for funding, make sure to specify the amount, how you plan to use it, and more importantly, how it will increase your profit margins. The executive summary needs to be professional, enthusiastic, and succinct. 

3. Business Overview

The company overview is where you start to dig into the details of your electrical contracting business. In short, it explains what your electrical business will do, and how you will achieve your objectives. The section often begins with a mission statement—typically 30 words or less—where you explain your company’s guiding principles and business philosophy.

Make sure to cover the following components in the business overview:

Goals and objectives : All successful businesses need to establish goals, objectives, and key performance indicators (KPIs). Make sure to elaborate on how you’ll set up your electrical shop for success .

Marketplace : Define your core customer base and explain how you’ll market your services, including the marketing channels you plan to use. Keep it brief. You’ll elaborate in the marketing plan section of your business plan.

Strengths and core competencies : Use this section to expand on the specific factors that will help your company succeed. Include what strengths set you apart from the competition and how you’ll prepare staff to succeed.

4. Services Analysis

Use this section to provide more detail about your specific products and electrical services. 

For example, (Electrical contractor name) offers residential and commercial electrical installation, service, and repair, including new installations, safety inspections, whole-home rewires, troubleshooting and servicing electrical issues, and more.  

Include any factors that give you a competitive advantage over other electrical contractors in your service area. For example, do your technicians possess advanced skills that enable them to work on high-tech electrical systems? Other examples of key service differentiators include:

Service guarantee 

Repair guarantee 

Replacement guarantee

Next, mention the pricing, fee, or leasing structures of your products or services. Will you price electrical jobs by the hour, or offer flat-rate pricing? You’ll want to examine the wage rate in your area to ensure you pay your employees a competitive salary. Also include the hourly rate, how you’ll account for drive time, and the billable amount for every job or service you offer.

5. Market Analysis

Include a market, or competitor, analysis. Identify and evaluate key competitors to define your company’s unique value proposition and capitalize on market opportunities. The analysis should include information on competitors’ strengths, weaknesses, market share, pricing strategies, and technological advancements.

Look for gaps in the market, whether there are services not being offered or service areas not being sufficiently served. These gaps create business opportunities . 

6. Customer Analysis

The customer analysis section of a business plan is where you focus on understanding your target customers. This includes describing your target market’s characteristics, needs, and behaviors to tailor your offerings effectively. Start by identifying your primary and secondary customer groups, considering factors like demographics (age, gender, location), psychographics (interests, values), and buying behaviors (how they make purchasing decisions). 

This analysis equips you to tailor your business strategies to meet customer demands effectively. By knowing your customers’ wants and pain points and leveraging customer experience software , you can create a strong foundation for building lasting customer relationships and achieving sustainable growth. 

ServiceTitan enables electrical contractors to provide their customers with a modern sales and service experience, which includes:

Scheduling options : Give leads the ability to schedule jobs whatever way works best for them, whether through web chats, texts, calls, or booking directly online. 

Detailed customer history : A robust CRM allows service techs to view complete customer information before arriving on the job site. Knowing the customer's name and job history helps techs and CSRs personalize the customer experience and provide better customer service.

Text messaging communication : Text appointment reminders and technician bios so customers know who and what to expect when your service truck arrives. Allow for two-way SMS communication, so customers can confirm appointments, reschedule appointments, or ask questions right from their phone. 

Live tracking : Allow customers to track your techs on a map, so they can better predict arrival times.

On-site estimates : Today’s customers don’t want to wait for estimates. With ServiceTitan Mobile , techs can build and display branded, digital estimates with good, better, and best options in just a few taps.  

Financing options: Working with your clients on payment options helps build loyal, repeat customers. With ServiceTitan customer financing, customers can apply for financing right from your tech’s phone or iPad, choose from different plans, and receive instant approval.

7. Marketing Plan

All businesses depend on marketing to promote their companies, generate new business, and grow repeat customers. If your electrical shop’s promotions or sales feel stagnant, it’s probably a good time to look at your marketing metrics and reevaluate your promotions and marketing channels. 

When it comes to marketing strategies , electricians typically utilize an omnichannel approach. If your target audience leans younger, you may want to invest heavily in digital marketing such as search engine optimization (SEO), Google ads, and social media marketing, while home mailers and direct mail may be more effective with older homeowners. Bottom line: You want to reach as many potential customers as possible, so don’t be afraid to try different marketing strategies.

Break down how you plan to spend marketing dollars by promotion channel, such as:

Direct mail (%)

Newspaper (%)

Television (%)

Search engine marketing (SEM) (%)

Social media marketing (%)

Your strategy should also include the average cost to acquire a new customer, and take into account other marketing drivers, such as club memberships and word-of-mouth referral programs.

Consider how your business will execute and track ROI of marketing strategies. For example, ServiceTitan offers data-driven marketing solutions to help you attract, convert, and retain customers, in addition to providing valuable insights into the performance of your campaigns.

8. Operations Plan

Expand on and explain the daily operation of your electrical contracting business, its location, equipment, people, processes, and surrounding environment.

Production : How and where are your products or services produced? Make sure to include production techniques and costs, quality control, customer service, inventory control, and product development.

Location : What requirements do you need in a physical location? Mention the amount of space, type of building, zoning, and utilities.

Legal : Include information related to licensing and bonding requirements, permits, environmental regulations, industry-specific regulations, zoning or building code requirements, liability insurance, and any trademarks, copyrights, or patents.

Personnel : List the number of employees, type of labor (skilled, unskilled, and professional), recruiting efforts, pay structure, training programs, and job descriptions.

Inventory and suppliers : Include the kind of inventory (raw materials, supplies, finished goods), the estimated value, and your top suppliers.

Credit policies : Will you sell your services on credit? If so, how will you approve customers or determine creditworthiness?

9. Management Summary

Mention the key roles that will manage the business on a day-to-day basis, including the general manager, operations manager, and other management team roles. What experience do they bring to the business? Do they hold special or distinctive competencies? Is there a plan for continuation of the business if leadership is lost or incapacitated?

If you employ more than 10 employees in your business structure, create an organizational chart showing the management hierarchy and who is responsible for key functions. Include descriptions for each position or employee.

You should also list professional and advisory support, including:

Board of directors

Management advisory board

Insurance agent

Consultant(s) 

Mentors and key advisors

10. Financial Plan

The financial plan typically includes a 12-month profit-and-loss projection, a cash-flow projection, a projected balance sheet, and a break-even calculation. Together, they present a reasonable estimate of your electrical contracting business's financial projections and business value . More importantly, the process of thinking through the financial plan will improve your insight into the inner financial workings of your company.

Include personal financial statements for each owner and major stockholder, showing assets and liabilities held outside the business and personal net worth. Owners will often have to draw on personal assets to finance the business, and these statements will show what is available. Bankers and investors usually want this information as well.

Over to You

ServiceTitan’s cloud-based, all-in-one electrical software gives business owners the technology they need to do the work efficiently, the data and reporting they need to do it smartly, and a wide array of resources to guide them as they grow toward achieving the goals outlined in their electrical contracting business plan.

>> Want to start your own electrical business or revitalize and grow an established business? Download this electrical business plan template to get started.

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Business Plan Template for Electrical Contractors

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Running an electrical contracting company can be a juggling act, with so many moving parts to manage and compete in a crowded market. That's where ClickUp's Business Plan Template for Electrical Contractors comes in handy!

Our template is designed to help electrical contractors:

• Outline clear goals, strategies, and financial projections to secure funding and attract clients
• Streamline marketing plans to target the right audience and stand out from the competition
• Ensure successful operations by tracking budgets, schedules, and project milestones

With ClickUp's Business Plan Template, you'll have all the tools you need to power up your electrical contracting business and achieve long-term success. Get started today and watch your business thrive!

Business Plan Template for Electrical Contractors Benefits

A Business Plan Template for Electrical Contractors offers numerous benefits to electrical contracting companies:

• Provides a clear roadmap for achieving business goals and objectives
• Helps secure funding by showcasing the company's potential and financial projections
• Attracts clients by demonstrating the company's professionalism and strategic approach
• Guides effective resource allocation, ensuring efficient operations and profitability
• Assists in identifying and addressing potential risks and challenges in the electrical industry
• Enables strategic marketing planning, targeting the right audience and maximizing outreach
• Facilitates collaboration among team members, aligning everyone towards a common vision
• Allows for regular performance tracking and adjustments to ensure business success in a competitive market.

Main Elements of Electrical Contractors Business Plan Template

ClickUp's Business Plan Template for Electrical Contractors provides a comprehensive framework for success in the electrical industry. Here are the main elements of this template:

• Custom Statuses: Track the progress of each section of your business plan with statuses like Complete, In Progress, Needs Revision, and To Do.
• Custom Fields: Include important details in your plan such as Reference, Approved, and Section to ensure accuracy and organization.
• Custom Views: Explore different perspectives with views like Topics, Status, Timeline, Business Plan, and Getting Started Guide to easily navigate and manage your business plan.
• Document Collaboration: Collaborate seamlessly with your team by using ClickUp's Docs feature to write, edit, and comment on your business plan.
• Task Management: Break down your business plan into actionable tasks, assign them to team members, set due dates, and track progress.
• Goal Tracking: Set goals, define key metrics, and track your progress towards achieving them with ClickUp's Goals feature.
• Gantt Chart: Visualize your business plan timeline using the Gantt chart view to ensure smooth project management and timely execution.
• Integration: Integrate with other essential tools like spreadsheets, accounting software, and communication apps to streamline your workflow and enhance productivity.

How To Use Business Plan Template for Electrical Contractors

If you're an electrical contractor looking to create a comprehensive business plan, you're in the right place. Follow these six steps to effectively use the Business Plan Template for Electrical Contractors in ClickUp:

1. Define your vision and goals

Start by clarifying your vision for your electrical contracting business. What do you want to achieve? Are you aiming to become a leader in your industry, expand your services, or increase your market share? Clearly define your long-term goals and how you plan to achieve them.

Use the Goals feature in ClickUp to set and track your business goals, such as increasing revenue by a certain percentage or expanding into new markets.

2. Analyze the market and competition

Conduct a thorough analysis of the electrical contracting market in your area. Identify your target customer base, assess the demand for your services, and analyze your competition. Understanding the market landscape will help you identify opportunities and create strategies to differentiate your business.

Use the Table view in ClickUp to organize and analyze market research data, including customer profiles, competitor analysis, and market trends.

3. Develop your service offerings

Outline the specific services you will offer as an electrical contractor. Consider both your core services, such as electrical installations and repairs, as well as any specialized services you may provide. Clearly define the value proposition of your services and how they meet the needs of your target customers.

Create tasks in ClickUp to define and document your service offerings, including the scope of work, pricing, and any unique selling points.

4. Create a marketing and sales strategy

Develop a comprehensive marketing and sales strategy to promote your electrical contracting business. Identify the most effective channels to reach your target audience, such as online advertising, social media, or local networking events. Outline your pricing strategy, sales tactics, and customer acquisition plan.

Use the Automations feature in ClickUp to streamline your marketing and sales processes, such as automatically sending follow-up emails to leads or tracking the effectiveness of your marketing campaigns.

5. Plan your operations and resources

Determine the operational aspects of your electrical contracting business, such as the equipment, tools, and resources you will need. Consider factors like staffing requirements, training and certifications, safety protocols, and project management processes. Develop a detailed plan to ensure smooth operations and efficient resource allocation.

Use the Gantt chart and Calendar view in ClickUp to schedule and manage your projects, allocate resources, and track progress.

6. Monitor and revise your business plan

Once your business plan is complete, it's important to regularly monitor its progress and make necessary revisions. Keep track of key performance indicators (KPIs) and financial metrics to assess the success of your strategies. Adjust your plan as needed to adapt to market changes, customer feedback, or new opportunities.

Create recurring tasks and set reminders in ClickUp to review and update your business plan on a regular basis, ensuring its relevance and effectiveness.

By following these steps and utilizing the Business Plan Template for Electrical Contractors in ClickUp, you'll be well-equipped to create a comprehensive and actionable plan for your electrical contracting business.

Get Started with ClickUp’s Business Plan Template for Electrical Contractors

Electrical contracting companies can use this Business Plan Template for Electrical Contractors to outline their goals, strategies, financials, and marketing plans, helping them secure funding, attract clients, and ensure successful operations in the competitive electrical industry.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a comprehensive business plan:

• Use the Topics View to organize your business plan into different sections, such as Executive Summary, Market Analysis, Financial Projections, etc.
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do
• The Timeline View will provide a visual representation of the deadlines and milestones for each section of your business plan
• The Business Plan View will give you an overview of the entire plan, allowing you to easily navigate and make updates
• The Getting Started Guide View will provide step-by-step instructions on how to use the template and create a successful business plan
• Utilize the custom fields Reference, Approved, and Section to add additional information and track the status of each section
• Collaborate with team members to gather input, feedback, and insights to create a comprehensive and effective business plan.
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How to Start an Electrical Business: A Guide for Prospective Entrepreneurs

By Tom Scalisi

Updated on Jan 26, 2024 10:56 PM EST

12 minute read

Photo: istockphoto.com

We may earn revenue from the products available on this page and participate in affiliate programs. Learn More ›

Electricians are well-compensated tradespeople—the U.S. Bureau of Labor Statistics reports that the median annual pay for an electrician in 2022 (the most recent year for which data is available) was $60,240, and an electrician can make even more than that with the right experience and training. To really rake in the bucks, many skilled electricians opt to start their own electrical business rather than work under another electrician. Being their own boss allows them to set their electricity business rates, design their schedules, and generally make their own decisions as long as they meet certain requirements.

This guide is designed to help aspiring and current electricians who are considering starting their own electrical business. Electricians will learn more about how to start an electrical business so they can make a plan to reach their professional goals.

Before You Begin…

It’s important for aspiring entrepreneurs to recognize that they don’t necessarily need to start their own electrical business to have a lucrative and rewarding career in the electrical industry. Electrical technology is changing every day, and electricians who continue to grow their skill sets will be more in demand over time and can increase their earnings as their knowledge and experience increases.

Also, it’s important for electricians to understand that their daily work routine will likely change when they’re running an electrical business. Rather than wiring houses or replacing circuit boards, they may be hiring and training employees, holding meetings, and shopping for insurance plans. If those activities aren’t appealing, an electrician may be better suited to being an employee at another electrical business than owning their own business.

Tips for Starting an Electrical Business

• Be patient. The process of becoming an electrician is long, and in some cases, it can take as many as 10 years before an electrician is in a place to start their own business.
• Start small. Before jumping into owning a full-fledged electrical business, an electrician can get their license, register a business name, and carry insurance while they’re still working for someone else.
• Understand local requirements. Each state’s rules are different. Electricians will want to make sure they understand all of the licensing and insurance requirements within their state.

STEP 1: Complete the training and work hours required to get your electrician license.

The first step for an individual to take when starting an electrical business is to get the required electrician license. In some states, a journeyman’s license is all an electrician needs to start their own business. In other states, a contractor may be required to have a master electrician’s license to legally start a business.

In either case, the path to both licenses starts with an apprenticeship. An apprenticeship is when a new electrician works under the supervision of a licensed electrician for several years, learning the trade from a professional.

“Most electrical apprenticeships have eligibility requirements including a high school diploma and proof of successfully completing algebra classes,” explains Stephan Cole, corporate field trainer with Rosendin , a nationwide electrical contractor with headquarters in San Jose, California. “There will be an interview process and the interviewers will ask you why you want to be an electrical worker and why you applied to this program; therefore, it would be wise to research the industry and the apprenticeship program that you are applying to, so you are ready and sure this is what you want to do.”

Each U.S. state has specific criteria that apprentices must meet before they can earn their next license (the journeyman license, in many cases). These requirements typically include a set number of work hours and/or a specific number of classroom hours (either in person or through one of the best online electrician schools ). Once an electrician has met these minimums, they can take their journeyman licensing exam.

If the state requires an electrician to hold a master electrician license to start a business, an electrician typically has two options:

• Get more work experience. A journeyman electrician can opt to work for several years under an experienced master electrician until they’re eligible to take their master electrician license exam. The exact amount of work experience needed to qualify for a master electrician license varies from state to state.
• Hire a master electrician. A journeyman electrician can hire a master electrician as an adviser and use their license to meet the state’s requirements for starting their business. Eventually, the business owner will be qualified to take their master electrician licensing exam, but they can operate legally under the master electrician’s license in the meantime.

STEP 2: Write a comprehensive business plan.

Once an electrician has the correct license and is ready to start their own business, they’ll need to write up an electrical business plan. This comprehensive document will include everything an entrepreneur needs to chart their course to success, and they’ll be able to refer back to it when they’re looking for investors, planning to scale, and making business decisions.

The following are some items an electrician business plan will need to include.

• Executive summary. This describes the entrepreneur’s business plan in one page, including what sets them apart from the competition.
• Business overview. This states the business name, important dates such as when the business was originally registered, and summarizes the business structure.
• A list of services. This section will include the specific electrical services the business will offer to customers. It could be a basic list of residential services, or it could include specialized services the business owner offers, which they may have obtained specific training to perform.
• Market analysis. This section will describe the business’s target customers and the competition in the area from other electrical businesses.
• Financial plan. This will include the business’s pricing strategy and profitability forecast, including how much money is expected to come into and go out of the business within the first year.
• Marketing strategy. This section describes how the business owner will market or advertise their business.

Electricians who aren’t sure how to write a business plan can enlist the help of a coworker or mentor, or even hire a professional business plan writer.

STEP 3: If necessary, secure financing to help fund your business start-up.

Starting an electrician business can be expensive. Some of the most common expenses an electrician will come across when starting a business include licensing fees, insurance premiums, tool and equipment purchases, and business vehicle purchases. The electrician may already have a vehicle or the basic tools needed to run an electrical business, but if they don’t, they’ll need to determine how to cover those start-up costs.

There are several options for an entrepreneur to secure money to start a new business, including the following.

• Taking out a small-business loan, either from a private lender or from the U.S. Small Business Administration .
• Tapping into their home’s equity through one of the best home equity loans , such as one from U.S. Bank or Flagstar Bank .
• Asking friends and family members to invest in their company or partner with them.
• Working extra hours with an employer to save the required money.
• Setting up a crowdfunding campaign to raise money.

Whatever decision an electrician makes, they’ll want to make sure they discuss it with a financial adviser to ensure they’re making the wisest choice possible for securing the financing they need.

STEP 4: Choose a business structure.

Once an electrician has a plan in place and the funding for their business, it’s time for them to choose a business structure. There are three main options an aspiring business owner can choose from.

• Sole proprietorship: Sole proprietorships are great for one-person small businesses, and they’re easy to set up. However, they don’t offer protection for the owner’s personal assets, which could cause issues if a future client sues the electrician in the event of property damage or injury that occurs during the course of a job.
• Limited liability company: An LLC is a common option for small electrical companies (even if they’re a one-person shop). This business structure includes more tax benefits for owners than a sole proprietorship and a layer of protection between personal assets and business assets.
• S corporation: An S corporation (sometimes shortened to S corp) is a business structure that provides liability protection and increased tax benefits for an electrical contractor.

Contractors will want to consult with a tax adviser or attorney before determining which structure is best suited for their business. They may even want to enlist the help of one of the best LLC services , such as LegalZoom or Northwest Registered Agent , to help them register their business.

STEP 5: Get the appropriate business licenses required by your state or local government.

Next, a business owner will need to register their business name with the state and secure the appropriate types of business licenses needed for them to run their business legally. These licenses are different from an electrician’s license, which is a type of trade license. Trade licenses allow the holder to work in a specific trade, while a business license allows them to operate a business within the state or local municipality.

The process of getting a business license involves a business owner registering their name and filling out the appropriate paperwork. This can usually be done through their secretary of state’s office, but some states have their own business licensing agencies, so it’s important for an entrepreneur to research the rules in their location. Once this process is complete, the contractor will have the required license and tax identification numbers that allow them to operate legally within the jurisdiction.

STEP 6: Get the appropriate business insurance coverage.

Business insurance may seem like an afterthought, but it is a necessity for all types of businesses. According to InterCoast Colleges , business insurance can help protect an electrician’s business and their money should a client sue them. All electricians need some form of general liability insurance, which pays for property damages or injuries to clients that occur while the electrician is on the job (up to the policy limits). For example, a general liability policy will help pay for repairs to a client’s home if the electrician’s ladder slips and breaks a window, or if the client trips over an extension cord laid out by the electrician and sustains an injury.

In addition to general liability insurance, electrical contracting company owners might consider the following types of insurance coverage.

• Inland marine insurance: This type of insurance covers an electrical business’s tools and equipment. If the covered items are damaged or stolen while being transported to or from a jobsite, inland marine insurance may help to repair or replace the covered items, less the deductible. Coverage may also apply when the tools and equipment are in storage or at a jobsite.
• Commercial auto insurance: This type of insurance covers vehicles owned and operated by the business. It can cover the costs of vehicle repairs after a collision or other type of covered damage, medical bills for injuries resulting from an accident, and any legal fees in the event of a lawsuit.
• Workers’ compensation insurance: This type of insurance covers medical costs and lost wages for employees who get hurt or become ill while on the job. It can also provide death benefits to dependents if an employee is killed while at work.

Many of the best small-business insurance companies , such as NEXT or Thimble , can bundle these policies into one for convenience and a discount as well.

STEP 7: Purchase the tools and equipment you need to get your business off the ground.

Practicing electricians likely have a basic set of the best electrician tools necessary to help them get started with their business. As they expand their offerings, however, they may need more expensive equipment, more powerful tools, special software for an electrical design business, and other business tools that help grow their company.

Business owners will want to ask themselves whether it’s best for them to buy a piece of equipment or to rent it. Alternatively, the owner can purchase the equipment and then rent it out for additional income. Since new business owners won’t want to spend money on unnecessary tools and equipment when they’re starting out, they’ll want to take their time when making major purchases, even if they need equipment to get their business off the ground.

STEP 8: Choose a business accounting software to help you track invoices and expenses.

There are certain aspects of being a business owner that can be streamlined or automated with the right software. Accounting software is a big help, as such programs can help the business owner produce and track invoices, balance accounts, track expenses, and even receive payments.

Choosing the best accounting software comes down to several factors. The software has to be within the business owner’s budget while also offering all the features they need to help their business run smoothly. As the business grows and its needs change, the owner can upgrade subscriptions or switch to more expensive, more comprehensive software down the road.

There are several options on the market, with Jobber being one of the biggest names in the space. New business owners will want to do their research by asking fellow electrical business owners which software they use and reading online reviews (such as Jobber reviews ) to see which option would best suit their needs.

STEP 9: Determine which services your business will offer and set pricing.

Electrical business owners get to determine the types of electrician services they offer. For instance, they may choose to work solely in residential projects, commercial projects, or both. They can also provide industrial electrical installation company services or work primarily with generators, switchgear, and other equipment. Some may choose to work with audio and visual equipment or low-voltage technology. There are many career paths for an electrician, which makes this profession even more appealing to those looking to specialize.

Another benefit of being the boss is that the electrician can set their own pricing. They can choose to offer flat rates for certain projects or charge an hourly electrician cost . If their costs rise, they can transfer the increase to their customers by raising their hourly rate. By pricing their services fairly and competitively, they can ensure a steady electrician salary for themselves and their employees.

STEP 10: Create a marketing plan that includes a business website and a digital marketing strategy.

All electrical businesses need marketing plans to help build brand awareness and attract new clients, and this goes far beyond printing electrician business cards to hand out to potential customers.

A website is a necessity, in that it provides a place where prospective customers can learn more about the business and contact the owner. Business owners with web experience can create their own business website from scratch, or they can use a website creation tool. Alternatively, a business owner can hire a web developer to build and/or maintain their website.

It’s important for the person running the business website to have a baseline understanding of search engine optimization (SEO), which is a process that makes it more likely for a website to come up in a search results page for related keywords. For example, a well-optimized electrician website is more likely to show up on Google after a potential customer searches for “ hire an electrician near me ” than one that lacks basic SEO principles. Business owners who aren’t familiar with SEO will likely want to hire a third-party agency or freelancer to take care of this for them.

In addition to a well-optimized and user-friendly website, electrical-business owners will want to invest in digital marketing in the form of social media, video, and ads. Running an Instagram page that showcases previous projects, filming YouTube videos that explain processes and highlight projects, and paying for internet ads targeting potential customers are all critical to growing a successful business.

STEP 11: Hire electricians and grow your business.

Once the business has been established, the owner will need to start looking into how they can grow the business, which is often called “scaling.” Scaling requires employees, such as office staff, managers, and more electricians.

Electrical-business owners will want to interview and hire journeyman electricians who know what they’re doing, as well as give back to the electrical community by hiring apprentices who want to learn the trade. In some cases, the business owner might even supply them with trucks or vans to get them from the shop to the jobsite. Best practices include providing these employees competitive wages, health care and retirement benefits, and time off, which helps them feel appreciated and builds loyalty to the electrician company.

Once an aspiring entrepreneur understands how to start an electrical business, they can make a plan to take themselves from employee to employer and build their future. Being a business owner is much different than being an electrician working for an employer, but with the right mindset, work ethic, and plan, it’s a great way for an electrician to achieve the business and lifestyle of their dreams.

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Electrical Business Plan Template & Guidebook

Starting and running an electrical business requires a lot of effort, funding, and preparation to be successful. One of the most important components of a successful electrical business is a comprehensive business plan. To make the process easier, the #1 Electrical Business Plan Template & Guidebook can provide prospective business owners with the tools they need to turn their dreams into reality. With this helpful resource, budding entrepreneurs can streamline the planning process, develop an actionable roadmap for their business’ development and growth, and create a plan that stands out from competitors.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Electrical Business [11 Steps]
• 10+ Best & Profitable Electrical Business Ideas [2023]
• 25 Catchy Electrical Business Names:
• List of the Best Marketing Ideas For Your Electrical Business:

How to Write a Electrical Business Plan in 7 Steps:

1. describe the purpose of your electrical business..

The first step to writing your business plan is to describe the purpose of your electrical business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a electrical business:

Our mission is to provide reliable and innovative electrical solutions that meet the individual needs of our customers, creating long-term relationships through an unwavering commitment to service excellence.

2. Products & Services Offered by Your Electrical Business.

The next step is to outline your products and services for your electrical business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your electrical business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your electrical business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your electrical business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a electrical business?

In order to run an electrical business, you will need the following equipment, supplies, and permits:

• Electrical tools and supplies (wire cutters, crimpers, test equipment, etc.)
• Electrical wiring and components (switches, receptacles, conduit, etc.)
• Business license
• Insurance coverage.
• State and local permits as required by your municipality.

5. Management & Organization of Your Electrical Business.

The second part of your electrical business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your electrical business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Electrical Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a electrical business varies based on many different variables, but below are a few different types of startup costs for a electrical business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your electrical business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your electrical business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your electrical business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Electrical Business Plans:

Why do you need a business plan for a electrical business.

A business plan for an electrical business is necessary to help identify and clarify the company's goals and objectives, as well as outline a strategy for achieving them. It also serves to provide potential investors or lenders with detailed information about the company's products, services, financials, marketing plans and resources. Additionally, a business plan can provide valuable insight into the market opportunity for an electrical business and help guide the development of an effective business model.

Who should you ask for help with your electrical business plan?

An experienced entrepreneur or small business consultant can help you develop a business plan for your electrical business. You may also want to speak with a lawyer who specializes in business law to get advice on any legal complexities or regulations you need to be aware of. Additionally, a financial planner can help you assess the financial viability of your business and offer advice on the best ways to structure your finances.

Can you write a electrical business plan yourself?

Yes, it is possible to write a electrical business plan yourself. Depending on the business, you might need to research the current market and trends in your industry, as well as consider your target customer base. Additionally, you would need to create a detailed financial plan that outlines expected costs and revenue. You also might want to consider enlisting the help of a professional business plan writer or consultant who can provide advice and guidance in order to help ensure your plan is comprehensive and accurate.

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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

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How to Start an Electrical Business in 11 Easy Steps

These 11 easy steps will reveal how to start an electrical business and guide you down the path to success.

At first, starting an electrical business might seem like a daunting task. However, even with all of the natural uncertainty of building a business from scratch, the steps in this article will reveal a simple process for you to follow with as little stress as possible.

Let’s explore the basic fundamentals of how to start an electrical business:

• Use the best marketing strategies
• Choose the right insurance for the business
• Competitively price electrical services for maximum profit
• Consistently meet with a Certified Public Accountant to stay on target
• Create a detailed business plan to evaluate your strategy as a whole
• Invest in the best electrician software to help streamline everyday operations

Essential business strategies like the ones listed above are what develop the secret sauce to establishing a prosperous business with consistent, sustainable growth. Take advantage of the pro tips in this article to minimize worries and mitigate risk.

1. Choose Electrical Service Offerings

Before exploring how to start an electrical business, it’s crucial to have several years of field experience.

Before getting started, at a minimum, you should be a journeyman, or preferably a master electrician. The prior experience you’ve gained as an electrician will help in thinking through your business model.

Before choosing the electrical services to offer, consider the target market, and ask yourself:

• Will you serve commercial, residential, or both types of customers?
• Are you offering services for new or existing constructions?
• What services do your customers need the most?
• Which services are your specialty?

Many businesses start with a few basic services for specific markets (e.g. residential homes) and then grow from there. This saves them from buying exorbitant amounts of tools and equipment all at once.

Even though you may want to serve both residential and commercial customers in the beginning, different equipment and licenses are often required for commercial accounts. For this reason, many businesses start in the residential space first before expanding into the commercial space.

2. Get Certified and Licensed Prior to Starting

As you’re likely already aware, both you AND your team need to be certified in order to complete jobs in the field. Depending on the type of electrical work being performed, you’ll need to look into your state’s requirements to cover all bases.

Also, keep in mind, in the U.S., many states have licensing requirements for starting an electrical business. Licenses and certifications are issued at the state level. For this reason, it’s important to stay up-to-date with local laws and regulations.

As a refresher, here are a few different types of electrician specializations :

• Residential
• Maintenance

3. Decide on the Best Electrical Business Name

Even though the electrical business name is important, it doesn’t have to be overly thought out or complex to be a great business name.

Take a look at a few simple elements to keep in mind when choosing the right name:

• Make it simple
• Choose two to three words related to offered services
• E.g. dallaseletricalservices.com

Keep in mind, it’s unnecessary to include:

• Excessive details
• [Your Name’s] Electrical Services
• Save it for your slogan

4. Consult With a Trusted CPA

Consulting with a CPA (i.e. Certified Public Accountant) is downright necessary to ensure a successful, financially-sound business.

Prior to starting the typical business ventures, establish factors such as:

• Business plan
• Bank accounts

CPAs evaluate all assets to determine how to launch the business, weigh costs, decide if a loan is necessary, determine when to start full-time, among other factors difficult to see at the outset. Additionally, CPAs will flag any financial obligations you haven’t thought about yet.

The best CPAs clear the path to success and mitigate potential risks, which might interfere. Before registering your electrical business, ALWAYS meet with a CPA first.

5. Get the Electrical Business Registered

After speaking with a trusted CPA, you’re ready to register the business. Fortunately, it’s relatively inexpensive to register businesses with your state. Plus, some states only require a little paperwork to complete registration.

Since becoming a registered business is easy, mitigates legal implications, and secures your personal assets, there’s no excuse to skip this crucial step in becoming a legal business!

In addition, registering your electrical business as an S Corp (i.e. S Corporation) or LLC (i.e. Limited Liability Company) protects personal assets in the unfortunate event of getting sued or receiving a dispute. Plus, it helps with filing taxes.

NEVER WAIT to register your electrical business. It needs to be done before getting started.

S Corp vs. LLC

Due to tax purposes, the IRS classifies businesses as sole proprietorships, partnerships, C corporations or S corporations. Since the LLC doesn’t have an IRS classification, it gets taxed as another type of business.

In short, registering as a sole proprietorships LLC requires you to pay self-employment taxes (e.g. social security and Medicaid). Which means, the entire business profit is taxed for that year.

As a result, many businesses choose to register as an S Corp. By registering as an S Corp or LLC, you (the business owner) can get a set salary. In other words, your salary will get a self-employment tax – instead of your total profits paying for it.

As always, consult with an excellent CPA before deciding how to register.

6. Create an Electrical Business Plan

After meeting with a CPA and registering the business, it’s time to create a business plan with the financial information you’ve gathered so far.

Both new AND established electrical businesses alike should have an official business plan. In fact, almost anyone providing financing to the business (e.g. loans, grants, investors, etc.) will ask to review it.

However, even if you don’t seek financial assistance, business plans keep everyone within the company focused and aligned on the right goals and vision. In addition, a great business plan helps with staying organized as well as preparing for unexpected events.

Take a look at how a basic outline of your electrical business plan should appear:

• Executive Summary
• Business Overview
• Electrical Services
• Market Analysis Summary
• Business Strategy
• Implementation Summary
• Management Summary
• Financial Plan

Remember, your electrical business plan is one of the most essential steps to becoming successful. The best ones are detailed, minimize stress, and set the business up to thrive. In turn, a great business plan takes time to create.

Though, it’s important to regularly update the plan with new contact information, financial updates, and more. Which means, it’s not a one-and-done document. Typically, monthly financial revisions and complete annual revisions are performed.

Before finalizing the business plan, have your CPA review it to ensure everything looks great.

Plan your prices in a few minutes using this FREE electrical pricing calculator to increase profits now!

7. Establish a Business Bank Account

Unfortunately, many new start-ups make the mistake of using their personal bank account for the business. This is a huge mistake, which can produce some complications when getting audited or filing taxes.

By keeping personal and business finances separate with a business bank account, it’ll simplify things for your CPA and mitigate confusion and potentially prevent costly mistakes.

The best thing you can do for your business’ finances is to establish a business bank account early on. If you’re wondering how to set up a business bank account, your CPA and bank are the most valuable resources in this process.

8. Get Bonded and Insured Before Working

While adequate business insurance presents upfront costs, getting bonded and insured will protect the business from financial liabilities when inevitable mishaps occur on the job. Most states require this before issuing a contractor license, which is required before accepting any work from clients.

As a result, business insurance protects the business from going bankrupt if a customer tries to sue. Get the best insurance which reasonably fits within the budget. Though, there’s no one-size-fits-all insurance policy. Choose the best insurance policy that meets your business’ needs.

9. Start Marketing to Win Customers

Quickly win customers through marketing . Use your marketing budget to help to establish the business’ brand, build credibility and expand the public’s awareness of your services.

Here’s a look inside the top 10 marketing strategies for electrical businesses:

• Freelancers can be a great resource for this
• Take advantage of email marketing
• Start PPC (i.e. Pay Per Click) marketing
• Discover how to leverage all reviews
• Explore content marketing
• Develop a video marketing strategy
• Actively use social media
• Place physical ads
• Use truck wraps to expand brand visibility
• Provide leave-behinds to receive fantastic referrals

By developing a marketing strategy as early as possible, you can increase brand awareness and win new customers fast.

Always remember, it’s crucial to build a website, and as the business grows, continually shift more focus onto SEO (i.e. search engine optimization). Create content on your website that prioritizes local industry keywords to improve your site’s rank in Google’s search results (E.g. “Dallas Electrician”). Ultimately, ranking higher in Google makes your company’s website more discoverable to leads.

Though, you don’t necessarily need a website to start your electrical business, it will help to quickly expand reach, build credibility and increase conversions. When you have space in the budget, consider hiring a freelance web developer . Meanwhile, Wix and Squarespace are simple, user-friendly website builders with easy-to-follow tutorials accessible to novices.

10. Begin the Electrician Hiring Process

After verifying the business plan with a CPA, you’ll likely already know if you need to hire another electrician to help you get started.

Now, let’s talk about the necessary steps in the electrician hiring process:

Conduct a Complete Background Check

Even if they’re a trusted referral, it’s vital to complete background checks on ALL employees before hiring.

After the ideal candidate has passed their phone screening and in-person interview, it’s time to conduct a complete background check. You’re looking for any potential liabilities or red flags they could present to the business if you should hire them.

For example, if the electrician has been caught stealing, then they’re probably not an adequate candidate for hire. Since they’ll be working in customers’ homes and offices and will operate expensive tools and equipment, both you and your clients need to be able to trust your team’s integrity.

Also, don’t forget to follow up with every candidate’s provided references – at least two recent professional and two personal references. This helps verify the information they’ve given you as well as provide insight about them as a potential employee.

If everything checks out, then it’s time to verify the candidate is legally ready to work – including any certifications or visas. Depending on the position being filled, make sure the candidate is willing to put in the time and effort into any training or additional credentials they may need to perform their job duties.

Obtain an EIN

In order to legally begin hiring employees, you’ll need to get an EIN (i.e. employer identification number) in the U.S. and a SIN (i.e. social insurance number) in Canada.

For those in the US, this is as simple as filling out an online application at IRS.gov . Likewise, if you’re in Canada, then there’s a similar process at Canada.ca .

Explore how to hire the best electricians for your business by downloading our FREE hiring guide !

11. Ignite Sustainable Growth With the Best Electrician Software

FieldEdge is the best electrician software to ignite long-term, sustainable growth. Plus, it’ll benefit your business EVEN MORE when using it from the start.

The best electrician software helps you to:

• Get paid faster
• Create instant estimates on-the-go
• Invoice clients with the touch of a button
• Create efficient routes to quickly dispatch electricians
• Access job history and customer information from anywhere

The #1 electrician software has the ultimate power to streamline your everyday business operations – allowing the business to grow even faster with all of the time and money saved. Plus, FieldEdge has helped THOUSANDS of businesses just like yours to become efficient, successful operations.

Explore how the best electrician software will transform your business growth. Book a demo of FieldEdge for free today!

How to Start an Electrical Business That’s Successful

In this article, we’ve discussed key components that lay the groundwork to starting a successful electrical business, including:

• Meeting with a CPA to discuss finances and liabilities
• Seeking outside specialist help when necessary
• Developing a strategic business plan

These actions will set you up for success as you explore how to start an electrical business.

Plus, if you want to maximize profits and optimize time as much as possible, then choose the best electrician software .

Follow these pro tips to help start an electrician business that thrives for many years to come!

Related: 10 Ways to Supercharge Your Electrician Marketing

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Electrical Business

Back to All Business Ideas

How to Start an Electrical Business

Written by: Carolyn Young

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by: David Lepeska

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

Published on January 6, 2022 Updated on March 13, 2024

Investment range

$3,250 - $23,100

Revenue potential

$130,000 - $1,000,000 p.a.

Time to build

1 – 3 months

Profit potential

$100,000 - $260,000 p.a.

Industry trend

​​Electricity is something that nearly everyone in the United States uses every day of their lives, one way or another. Electrical services are so important that the electrician industry is valued at over $200 billion. Electricians are highly skilled and are able to do work that is dangerous for the layperson to attempt, which is why they are in high demand. You can start an electrical business and tap into that demand and build a lucrative business.

Starting an electrical business will have challenges and require hard work and knowledge to be successful. This step-by-step guide has all the information and insight that you need to be on your way to start your entrepreneurial journey.

Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.

Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .

Step 1: Decide if the Business Is Right for You

Pros and cons.

Starting an electrical business has pros and cons that you should consider before deciding if the business is right for you.

• High Demand – Electrical services are in demand by consumers and businesses
• Valuable Service – Provide essential services and safety to customers
• Good Profit – Electricians command high rates
• Education – You need to complete education to become licensed
• Odd Hours – Customers may require emergency service at odd hours

Electrical industry trends

Rising new home construction has contributed to the growth of the US electrician industry. 

Industry size and growth

• Industry size and past growth – Market analyst IBISWorld values the US electrician industry at nearly $205 billion in 2022. The industry has grown over 35% in the last decade.(( https://www.ibisworld.com/industry-statistics/market-size/electricians-united-states/ ))  
• Growth forecast – Pent-up demand will contribute to robust growth over the five years to 2026, according to IBISWorld.(( https://www.ibisworld.com/united-states/market-research-reports/electricians-industry/ )) 
• Number of businesses – There are nearly 225,000 electricians in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/electricians-united-states/ ))
• Number of people employed – The industry employs over a million people.(( https://www.ibisworld.com/industry-statistics/employment/electricians-united-states/ )) 

Trends and challenges

Some trends in the industry include:

• Demand for energy efficiency is rising, which is increasing the demand for electrical upgrades. New technologies, including energy storage technologies, are emerging to increase efficiency. Electricians will need to stay up to date on these technologies.
• Sustainably made materials are also in demand, including recycled parts.

Some challenges also exist in the electrical industry which include:

• There is a shortage of licensed electricians which will present a challenge for electrical companies looking to hire.
• Liability issues exist if mistakes are made that jeopardize safety. Electricians must work with extreme caution. 

What kind of people work as electricians?

• Gender – More than 95% of electricians are male and the rest are female.(( https://www.zippia.com/electrician-jobs/demographics/#gender-statistics ))
• Average level of education – 32% of electricians finished high school while 30% hold an associate degree. It’s a good idea to earn professional certifications as electricians.(( https://www.zippia.com/electrician-jobs/education/ ))
• Average age – Electricians are mostly under 45 years old.(( https://www.zippia.com/electrician-jobs/demographics/#age-statistics ))

How much does it cost to start an electrical business?

Startup costs for an electrical business range from just over $3,000 to nearly $25,000. The low end assumes that you are already licensed and are going to run your business as a solopreneur from home. The high end includes the cost of training and setting up an office and shop. 

You’ll need a handful of items to successfully launch your electrical business. Here’s a list to get you started:

• Screwdrivers and nut drivers
• Wire strippers
• Fishing tools
• Measuring devices
• Labeling machines
• Power drills and drivers, hammer/drills

How much can you earn from an electrical business?

The average electrical contractor usually charges $75 to $100 per hour.  Working from home, your profit margin should be about 80%. In your first year or two, you could work from home 25 hours a week at $100 per hour, bringing in $130,000 in annual revenue. This would mean over $100,000 in profit, assuming that 80% margin. 

As your brand gains recognition, sales could climb to jobs that take 200 hours per week. At this stage, you would have a shop and office and staff, including other electricians, reducing your profit margin to around 25%. With expected annual revenue of over $1,000,000, you would make over a quarter-million dollars.

What barriers to entry are there?

There are a few barriers to entry for an electrical business. Your biggest challenges will be:

• You need to be a licensed electrician or go through the process to become licensed
• Finding other qualified electricians to work for you may be challenging

Related Business Ideas

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How to Start a Handyman Business

Step 2: refining your business concept, in-depth market research:.

Comprehensive market research is foundational for any successful business. This includes analyzing local electrical services, understanding customer demands, and identifying gaps in the market. For example, is there a demand for eco-friendly electrical services or advanced home automation installations? Such insights can help you differentiate your business right from the start.

Service Portfolio Development:

Detail the range of services you plan to offer. Will your focus be on residential electrical issues, commercial electrical systems, or specialized services like smart home installations or renewable energy solutions? Clarify your expertise areas and consider offering unique services that are in demand but not widely available in your area.

Pricing and Profitability

Competitive pricing strategy:.

Set your service rates competitively, typically between $75 to $100 per hour. Factor in costs for parts, potential markups, and overhead charges. A solo operation should aim for a higher profit margin (around 80%), while a business with a team and office should adjust to a lower margin (around 25-30%). Regularly review and adjust your pricing to stay competitive and profitable.

Cost Management:

Use tools like our profit margin calculator to fine-tune your pricing strategy. Keep track of all expenses, including materials, labor, and overhead, to ensure your pricing covers costs and yields a healthy profit margin.

Identifying Your Target Market

Market segmentation:.

Your services should align with the needs of your target market. For residential services, focus on homeowners, offering maintenance, repairs, and upgrades. For commercial services, target businesses requiring installations, inspections, and energy-efficient solutions. Use platforms like Facebook, LinkedIn, and local community forums to connect with potential clients.

Setting Up Your Business Location

Starting small and scaling up:.

Initially, operating from home can significantly reduce overhead costs. As your business expands, look for commercial spaces that cater to your growing needs. Key factors for choosing a space include accessibility, adequate space and ventilation, natural lighting, and a flexible lease. Utilize online resources like Craigslist or Crexi to find suitable locations.

Infrastructure Needs:

Consider the necessary infrastructure for your business, such as storage for tools and materials, a workspace for small repairs, and an office area for administrative tasks. Ensure the space can be adapted as your business grows.

Step 3: Brainstorm an Electrical Company Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “electric” or “electrical”, boosts SEO
• Name should allow for expansion, for ex: “Jim’s Electric” over “Jim’s Wiring”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator . Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Find a Domain

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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create an Electrical Contractor Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

• Executive Summary: Summarize your electrical contractor business’s mission to provide high-quality, reliable electrical installation and maintenance services for residential, commercial, and industrial clients.
• Business Overview: Describe your business’s focus on offering electrical services, including wiring installations, repairs, inspections, and upgrades for a variety of projects.
• Product and Services: Detail the range of electrical services offered, such as new construction wiring, electrical system upgrades, safety inspections, and emergency repair services.
• Market Analysis: Evaluate the demand for electrical contracting services, considering factors like construction trends, local business growth, and home renovation activities.
• Competitive Analysis: Compare your business to other local electrical contractors, focusing on your strengths like specialized skills, quick response times, or competitive pricing.
• Sales and Marketing: Outline your strategy for attracting clients, using methods like local advertising, building partnerships with construction firms, or creating an online presence.
• Management Team: Highlight the qualifications and experience of your team, particularly in electrical work, project management, and customer service.
• Operations Plan: Describe the operational aspects, including project bidding, job scheduling, staff management, and compliance with safety standards.
• Financial Plan: Provide an overview of financial aspects, covering startup costs, pricing strategy, and revenue projections.
• Appendix: Include supplementary documents such as licenses, certifications, project portfolios, or detailed market research to support your business plan.

If you’ve never created a business plan yourself before, it can be an intimidating task. Consider hiring an experienced business plan writer to create a professional business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to electrical businesses. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your electrical business will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have. 

Form Your LLC

Choose Your State

We recommend ZenBusiness as the Best LLC Service for 2023

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist , and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Personal financing or friends and family financing may be your best bets, or you might be able to get a bank loan for your training.

Step 8: Apply for Electrical Contractor Licenses and Permits

Starting an electrical business requires obtaining a number of licenses and permits from local, state, and federal governments. You need to be a licensed electrician in your state. Check your state’s website for requirements. An electrician’s license is considered a specialty contractor’s license.

Federal regulations, licenses, and permits associated with starting your business include doing business as, health license and permit from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level licenses and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. You could also check this SBA guide for your state’s requirements. 

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

For peace of mind and to save time, we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state, and provide them to you to make sure you’re fully compliant.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account . Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your electrical business as a sole proprietorship. 

Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of any of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You can use industry-specific software, such as ServiceTrade , connecteam , or ServiceTitan , to manage your pricing, bids, scheduling, dispatching, and to monitor your key performance indicators (KPIs).

• Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero . 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using services like WordPress, Wix, or Squarespace . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.

Here are some powerful marketing strategies for your future business:

• Local Partnerships and Sponsorships: Forge partnerships with local businesses, contractors, or community events. Sponsoring local events or sports teams can increase brand awareness and position your electrical business as an integral part of the community.
• Targeted Social Media Advertising: Leverage social media platforms like Facebook and Instagram to run targeted advertising campaigns. Focus on specific demographics and geographic areas to reach potential customers who are more likely to need electrical services.
• Customer Referral Programs: Encourage your satisfied customers to refer your services to others by implementing a referral program. Offer discounts or incentives for each successful referral, turning your happy clients into brand ambassadors.
• Seasonal Promotions: Introduce seasonal promotions or discounts during peak times when homeowners are likely to undertake electrical projects, such as the spring and fall. This can create a sense of urgency and attract more business during high-demand periods.
• Educational Workshops: Host workshops or webinars in your local community to educate homeowners on electrical safety, energy efficiency, or DIY tips. Position yourself as an expert, and participants are more likely to turn to your business for their electrical needs.
• Vehicle Branding: Ensure your service vehicles are branded with your logo, contact information, and a brief service offering. These moving advertisements not only enhance your professional image but also serve as mobile billboards, promoting your business wherever you go.
• Online Reviews and Testimonials: Actively encourage satisfied customers to leave positive reviews on popular review sites like Google, Yelp, or industry-specific platforms. Positive reviews build trust and credibility, influencing potential clients to choose your services.
• 24/7 Emergency Service Promotion: Highlight your ability to provide 24/7 emergency electrical services. Create targeted marketing materials that emphasize your quick response times during urgent situations, positioning your business as a reliable and responsive service provider.
• Loyalty Programs: Implement a loyalty program for repeat customers. Offer discounts or special perks for clients who consistently choose your services, fostering long-term relationships and customer loyalty.
• Branded Merchandise Giveaways: Distribute branded merchandise such as pens, notepads, or even small electrical tools at local events or as part of a promotion. This creates brand visibility and serves as a constant reminder of your services.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your electrical business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your electrical business could be: 

• Eco-friendly electrical services to increase your energy efficiency
• 24/7 on-call electrical services
• Reliable electrical services for small businesses

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running an electrical business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in electric for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in electrical businesses. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for an electrical business would include:

• Electricians – provide electrical services
• Dispatcher – take calls and dispatch electricians
• General Manager – staff management, supply ordering, accounting

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run an Electrical Business – Start Making Money!

Electricians are in high demand. The industry is worth over a shocking $200 billion in the United States alone!  You can start your own electrical business and get just a few watts of that market to make a healthy profit. Even working by yourself from your home, you’ll be doing well since you can charge $100 per hour or even more. 

Your skills are valuable, and you’ll be performing an essential service as well. Now that you’ve added more knowledge to your toolbelt, you’re ready to start wiring up a successful electrical business!

• Electrical Business FAQs

Electricians generally charge between $75 to $100 per hour plus parts. Some also charge a markup on parts and an extra charge to cover the company overhead.

Every state has its own requirements to become licensed. Some require a certain number of hours or years working with a licensed electrician, and some require more formal training. You also may have to pass an exam.

To get customers for your electrical business, you can focus on developing a strong online presence through social media, search engine optimization, and online advertising. You can also network with other professionals in the industry, such as contractors and real estate agents, to generate referrals and build relationships with potential clients. 

Generally, electrical businesses that focus on providing high-quality services, building strong customer relationships, and staying up-to-date with the latest industry trends and technologies are more likely to be profitable over the long term.

As an electrical business, you can offer a wide range of services to clients, including installation, repair, and maintenance of electrical systems in residential, commercial, and industrial settings. Specific services may include wiring and rewiring, lighting installation, electrical panel upgrades, generator installation, and energy efficiency upgrades.

You can emphasize your commitment to safety, reliability, and sustainability, and showcase your qualifications and certifications to demonstrate your expertise and credibility in the industry. 

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• Decide if the Business Is Right for You
• Refining Your Business Concept
• Brainstorm an Electrical Company Name
• Create an Electrical Contractor Business Plan
• Register Your Business
• Register for Taxes
• Fund your Business
• Apply for Electrical Contractor Licenses and Permits
• Open a Business Bank Account
• Get Business Insurance
• Prepare to Launch
• Build Your Team
• Run an Electrical Business - Start Making Money!

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How to Start an Electrical Business

Starting an electrical business can be very profitable. With proper planning, execution and hard work, you can enjoy great success. Below you will learn the keys to launching a successful electrical business.

Importantly, a critical step in starting an electrical business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .

Download our Ultimate Business Plan Template here

14 Steps To Start an Electrical Business :

• Choose the Name for Your Electrical Business
• Develop Your Electrical Business Plan
• Choose the Legal Structure for Your Electrical Business
• Secure Startup Funding for Your Electrical Business (If Needed)
• Secure a Location for Your Business
• Register Your Electrical Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Electrical Business
• Buy or Lease the Right Electrical Business Equipment
• Develop Your Electrical Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Electrical Business
• Open for Business

1. Choose the Name for Your Electrical Business

The first step to launching an electrical business is to choose your business’ name.  

This is a very important choice since your company name is your brand and will last for the lifetime of your business. Ideally, you choose a name that is meaningful and memorable. Here are some tips for choosing a name for your electrical business:

• Make sure the name is available . Check your desired name against trademark databases and your state’s list of registered business names to see if it’s available. Also check to see if a suitable domain name is available.
• Keep it simple . The best names are usually ones that are easy to remember, pronounce and spell.
• Think about marketing . Come up with a name that reflects the desired brand and/or focus of your electrical business.

2. Develop Your Electrical Business Plan

One of the most important steps in starting an electrical contracting business is to develop your business plan. The process of creating your electrical contractor business plan ensures that you fully understand your local market and your business strategy. The plan also provides you with a roadmap to follow and if needed, to present to funding sources to raise capital for your business.

Your business plan should include the following sections:

• Executive Summary – this section should summarize your entire business plan so readers can quickly understand the key details of your electrical business.
• Company Overview – this section tells the reader about the history of your electrical business and what type of electrical business you operate. For example, are you an electrical contractor, electrical manufacturer, or an electrical wholesaler?
• Industry Analysis – here you will document key information about the electrical industry. Conduct market research and document how big the industry is and what trends are affecting it.
• Customer Analysis – in this section, you will document who your ideal or target customers are and their demographics. For example, how old are they? Where do they live? What do they find important when purchasing services like the ones you will offer?
• Competitive Analysis – here you will document the key direct and indirect competitors you will face and how you will build competitive advantage.
• Marketing Plan – your marketing plan should address the 4Ps: Product, Price, Promotions and Place.
• Product : Determine and document what products/services you will offer 
• Prices : Document the prices of your products/services
• Place : Where will your business be located and how will that location help you increase sales?
• Promotions : What promotional methods will you use to attract customers to your own electrical contracting business? For example, you might decide to use pay-per-click advertising, public relations, search engine optimization and/or social media marketing.
• Operations Plan – here you will determine the key processes you will need to run your day-to-day operations. You will also determine your staffing needs. Finally, in this section of your plan, you will create a projected growth timeline showing the milestones you hope to achieve in the coming years.
• Management Team – this section details the background of your company’s management team.
• Financial Plan – finally, the financial plan answers questions including the following:
• What startup costs will you incur?
• How will your electrical business make money?
• What are your projected sales and expenses for the next five years?
• Do you need to raise funding to launch your business?

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3. choose the legal structure for your electrical business.

Next you need to choose a legal structure for your own electrical business and register it and your business name with the Secretary of State in each state where you operate your business.

Below are the five most common legal structures:

1) Sole proprietorship

A sole proprietorship is a business entity in which the business owner and the business are the same legal person. The owner of a sole proprietorship is responsible for all debts and obligations of the business. There are no formalities required to establish a sole proprietorship, and it is easy to set up and operate. The main advantage of a sole proprietorship is that it is simple and inexpensive to establish. The main disadvantage is that the business owner is liable for all debts and obligations of the business.

2) Partnerships

A partnership is a legal structure that is popular among small business owners. It is an agreement between two or more people who want to start an electrical business together. The partners share in the profits and losses of the business. 

The advantages of a partnership are that it is easy to set up, and the partners share in the profits and losses of the business. The disadvantages of a partnership are that the partners are jointly liable for the debts of the business, and disagreements between partners can be difficult to resolve.

3) Limited Liability Company (LLC)

A limited liability company, or LLC, is a type of business entity that provides limited liability to its owners. This means that the owners of an LLC are not personally responsible for the debts and liabilities of the business. The advantages of an LLC for an electrical business include flexibility in management, pass-through taxation (avoids double taxation as explained below), and limited personal liability. The disadvantages of an LLC include lack of availability in some states and self-employment taxes.

4) C Corporation

A C Corporation is a business entity that is separate from its owners. It has its own tax ID and can have shareholders. The main advantage of a C Corporation for an electrical business is that it offers limited liability to its owners. This means that the owners are not personally responsible for the debts and liabilities of the business. The disadvantage is that C Corporations are subject to double taxation. This means that the corporation pays taxes on its profits, and the shareholders also pay taxes on their dividends.

5) S Corporation

An S Corporation is a type of corporation that provides its owners with limited liability protection and allows them to pass their business income through to their personal income tax returns, thus avoiding double taxation. There are several limitations on S Corporations including the number of shareholders they can have among others.

Once you register your own business, your state will send you your official “Articles of Incorporation.” You will need this among other documentation when establishing your banking account (see below). We recommend that you consult an attorney in determining which legal structure is best suited for your company.

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4. Secure Startup Funding for Your Electrical Business (If Needed)

In developing your electrical business plan, you might have determined that you need to raise funding to launch your business. 

If so, the main sources of funding for an electrical business to consider are personal savings, family and friends, credit card financing, bank loans, crowdfunding and angel investors. Angel investors are individuals who provide capital to early-stage businesses. Angel investors typically will invest in an electrical business that they believe has high potential for growth.

5. Secure a Location for Your Business

When starting an electrical business, you’ll need to find the right location. There are a few things you’ll want to keep in mind when choosing a location:

• The area should be zoned for commercial businesses.
• The location should be accessible and easy to find.
• It’s important to find a space that’s big enough to accommodate your business operations.
• Check the cost of rent and utilities in the area.
• The neighborhood should be safe and have good infrastructure.
• Make sure you have enough parking available.

6. Register Your Electrical Business with the IRS

Next, you need to register your business with the Internal Revenue Service (IRS) which will result in the IRS issuing you an Employer Identification Number (EIN).

Most banks will require you to have an EIN in order to open up an account. In addition, in order to hire employees, you will need an EIN since that is how the IRS tracks your payroll tax payments.

Note that if you are a sole proprietor without employees, you generally do not need to get an EIN. Rather, you would use your social security number (instead of your EIN) as your taxpayer identification number.

7. Open a Business Bank Account

It is important to establish a bank account in your electrical business’ name. This process is fairly simple and involves the following steps:

• Identify and contact the bank you want to use
• Gather and present the required documents (generally include your company’s Articles of Incorporation, driver’s license or passport, and proof of address)
• Complete the bank’s application form and provide all relevant information
• Meet with a banker to discuss your business needs and establish a relationship with them

8. Get a Business Credit Card

You should get a business credit card for your electrical business to help you separate personal and business expenses.

You can either apply for a business credit card through your bank or apply for one through a credit card company.

When you’re applying for a business credit card, you’ll need to provide some information about your business. This includes the name of your business, the address of your business, and the type of business you’re running. You’ll also need to provide some information about yourself, including your name, Social Security number, and date of birth.

Once you’ve been approved for a business credit card, you’ll be able to use it to make purchases for your business. You can also use it to build your credit history which could be very important in securing loans and getting credit lines for your business in the future.

9. Get the Required Business Licenses and Permits

In order to start an electrical company, you will need a business license, a trade name registration, and a general contractor’s license. You may also need a specialty contractor’s license, depending on the services you plan to offer.

10. Get Business Insurance for Your Electrical Business

The type of insurance you need to operate an electrical business will depend on the scope of business operations. 

Some business insurance policies you should consider for your new electrical business include:

• General liability insurance : This covers accidents and injuries that occur on your property. It also covers damages caused by your employees or products.
• Auto insurance : If a vehicle is used in your business, this type of insurance will cover if a vehicle is damaged or stolen.
• Workers’ compensation insurance : If you have employees, this type of policy works with your general liability policy to protect against workplace injuries and accidents. It also covers medical expenses and lost wages.
• Commercial property insurance : This covers damage to your property caused by fire, theft, or vandalism.
• Business interruption insurance : This covers lost income and expenses if your business is forced to close due to a covered event.
• Professional liability insurance : This protects your business against claims of professional negligence.

Find an insurance agent, tell them about your business and its needs, and they will recommend policies that fit those needs. 

11. Buy or Lease the Right Electrical Business Equipment

To run your electrical business, you will need a variety of equipment, including tools, testing equipment, and safety gear. Ensure everything you need before starting your business. You may also want to consider purchasing a vehicle or trailer to transport your equipment.

12. Develop Your Electrical Business Marketing Materials

Marketing materials will be required to attract and retain customers to your electrical business.

The key marketing materials you will need are as follows:

• Logo : Spend some time developing a good logo for your electrical business. Your logo will be printed on company stationery, business cards, marketing materials and so forth. The right logo can increase customer trust and awareness of your brand.
• Website : Likewise, a professional electrical business website provides potential customers with information about the services you offer, your company’s history, and contact information. Importantly, remember that the look and feel of your website will affect how customers perceive you.
• Social Media Accounts : establish social media accounts in your company’s name. Accounts on Facebook, Twitter, LinkedIn and/or other social media networks will help customers and others find and interact with your electrical business.

13. Purchase and Setup the Software Needed to Run Your Electrical Business

You’ll need electrical estimating software to help you price out jobs and materials. You’ll also need a Computer-Aided Design (CAD) program to create wiring diagrams and other designs. Billing and invoicing software can help you keep track of payments and customers. Finally, a project management tool can help you stay on top of jobs from start to finish.

14. Open for Business

You are now ready to open your electrical business. If you followed the steps above, you should be in a great position to build a successful business. Below are answers to frequently asked questions that might further help you.

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How to Start an Electrical Business FAQs

Is it hard to start an electrical business.

No, it is not hard to start an electrical business. You will need to have a good understanding of the electrical code, and how to safely install and repair electrical systems.

How can I start an electrical business with no experience?

There are a few ways to start an electrical business with no experience. One way is to find an experienced electrician who is willing to mentor you. Another way is to take classes or attend seminars that will teach you the basics of the trade. You can also watch instructional videos online or read books about electrical work. Make sure you are well-informed and prepared before starting your own business.

What type of electrical business is most profitable?

The type of electrical business that is most profitable is a business that provides services such as repair, installation, and maintenance. Providing these services can be a lucrative business, as there is a lot of demand for them. Additionally, other small business owners that provide residential electrical services often have low overhead costs, which can help to increase profits.

How much does it cost to start an electrical business?

The cost to start an electrical business varies depending on the size and scope of the business. However, on average, starting an electrical business can cost between $10,000 and $30,000. This includes licensing, permits, insurance, and equipment costs .

What are the ongoing expenses for an electrical business?

The ongoing expenses for an electrical business can vary greatly, depending on the size of the business, the services offered, and the location. Some of the most common expenses include utilities, labor costs for electrical workers , materials and electrical supplies, marketing and advertising, and insurance.

How does an electrical business make money?

Professional electricians make money by completing electrical jobs for their customers. This could be by installing or repairing electrical equipment, or providing a consultation service.

Is owning an electrical business profitable?

Yes, owning an electrical business can be profitable because there is a consistent need for these kinds of services. Electrical businesses are necessary for both residential and commercial properties, so they are always in demand. Additionally, as technology advances, more homes and businesses will require updated electrical systems, providing greater opportunities for electrical business owners.

Why do electrical businesses fail?

There are a number of reasons some electrical businesses fail. One reason may be that the business does not have a solid business plan and marketing strategy. Other reasons may include competition from larger businesses, bad customer service, lack of qualified electricians, or not enough capital to sustain the business.

Other Helpful Business Plan Articles & Templates

How to write a business plan for an electronics repair shop?

Writing a business plan for an electronics repair shop can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing an electronics repair shop business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for an electronics repair shop?

• What information is needed to create a business plan for an electronics repair shop?
• What goes in the financial forecast for an electronics repair shop?
• What goes in the written part of an electronics repair shop business plan?
• What tool can I use to write my electronics repair shop business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having an electronics repair shop business plan is so crucial.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your electronics repair shop. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your electronics repair shop to be in the next three to five years.

Once you have a clear destination for your electronics repair shop, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your electronics repair shop's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

Whether you are a startup or an existing business, writing a detailed electronics repair shop business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your electronics repair shop has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for an electronics repair shop, let's take a look at what information is needed to create one.

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Information needed to create a business plan for an electronics repair shop

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your electronics repair shop business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for an electronics repair shop

Before you begin writing your business plan for an electronics repair shop, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your electronics repair shop.

You may discover that customers increasingly prefer to use online services for their electronics repair needs. Additionally, you could find that customers might be looking for more affordable repair options.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your electronics repair shop.

Developing the sales and marketing plan for an electronics repair shop

Budgeting sales and marketing expenses is essential before creating an electronics repair shop business plan.

A comprehensive sales and marketing plan should provide an accurate projection of what actions need to be implemented to acquire and retain customers, how many people are needed to carry out these initiatives, and how much needs to be spent on promotions, advertising, and other aspects.

This helps ensure that the right amount of resources is allocated to these activities in order to hit the sales and growth objectives forecasted in your business plan.

The staffing and equipment needs of an electronics repair shop

As you embark on starting or expanding your electronics repair shop, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

Staffing costs for an electronics repair shop might include wages for technicians, administrative staff, and customer service representatives. Equipment costs might include tools and supplies such as soldering irons, screwdrivers, pliers, and testing devices.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your electronics repair shop's financial forecast?

The objective of the financial forecast of your electronics repair shop's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for an electronics repair shop are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for an electronics repair shop shows how much revenue and profits your business is expected to generate in the future.

Ideally, your electronics repair shop's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established electronics repair shop. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your electronics repair shop

Your electronics repair shop's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

• Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
• Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

Your electronics repair shop's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

• Your electronics repair shop's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
• And its solvency: does your business have the capacity to repay its debt over the medium-term?

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your electronics repair shop has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your electronics repair shop business plan.

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

• Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
• Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
• Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your electronics repair shop business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting an electronics repair shop.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the electronics repair shop, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your electronics repair shop business plan, let's have a look at the written part of the plan.

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The written part of an electronics repair shop business plan

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of an electronics repair shop business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your electronics repair shop's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your electronics repair shop, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

In your electronics repair shop business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your electronics repair shop, you might emphasize its proximity to a large population center that could provide a steady stream of potential customers. You could also point out that the area is experiencing rapid economic growth, which could lead to increased demand for the services you offer. Additionally, you may note that the area has strong infrastructure, including easy access to transportation, communication, and other necessary resources, which could make it easier to do business there.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your electronics repair shop business plan should include a detailed description of what your company sells to its customers. 

For example, your electronics repair shop could offer services such as laptop and phone repair, device diagnostics, and data recovery. These services are important for customers to have quick and reliable access to when their electronic devices and systems experience issues or malfunctions. Laptop and phone repair services can help customers get their devices back up and running quickly. Device diagnostics can help identify the source of the issue and provide customers with the knowledge they need to make informed decisions about their device. Data recovery services can help customers recover valuable data that might otherwise be lost.

The reader will want to understand what makes your electronics repair shop unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When you present your market analysis in your electronics repair shop business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your electronics repair shop, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your electronics repair shop aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include young professionals in the area who need their electronic devices repaired. These people may not have the time or the skills to repair their devices themselves, but they are willing to pay for a professional service to get it done quickly and efficiently. They may also have the disposable income to spend on repairs, as they often need their devices to complete their jobs.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your electronics repair shop.

5. The strategy section

When crafting the strategy section of your business plan for your electronics repair shop, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your electronics repair shop could face the risk of theft. There may be valuable equipment, parts, and tools stored at the shop that could be at risk of being stolen. Additionally, there could be a risk of damage to the equipment and parts while they are being repaired. If the equipment is mishandled or not properly repaired, it might be damaged beyond repair.

6. The operations section

The operations of your electronics repair shop must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your electronics repair shop - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You could have key assets such as tools and equipment used for repair and maintenance of electronics. This could include items such as soldering irons, diagnostic instruments, power supplies, various spare parts, and more. Additionally, you might have intellectual property such as specialized knowledge in repairing electronics, trade secrets, and proprietary processes or techniques developed by the repair shop.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we discussed earlier in this guide.

Now that you have a clear idea of what goes into an electronics repair shop business plan, let's look at some of the tools you can use to create yours efficiently.

What tool should I use to write my electronics repair shop's business plan?

In this section, we will be reviewing the two main solutions for creating an electronics repair shop business plan:

• Using specialized online business plan software,
• Outsourcing the plan to the business plan writer.

Using an online business plan software for your electronics repair shop's business plan

The modern and most efficient way to write an electronics repair shop business plan is to use business plan software .

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your electronics repair shop's business plan

Outsourcing your electronics repair shop business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your electronics repair shop business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your electronics repair shop's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write an electronics repair shop business plan is not advisable. Allow me to explain the reasons.

Firstly, creating an accurate and error-free financial forecast on Excel or any spreadsheet demands technical expertise in accounting principles and financial modelling. Without a degree in finance and accounting and significant financial modelling experience, it's unlikely that the reader will fully trust your numbers.

Secondly, relying on spreadsheets is inefficient. While it may have been the go-to option in the past, technology has evolved, and software now performs such tasks much faster and more accurately.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software offers ease in comparing actuals versus forecasts and maintaining up-to-date forecasts for clear visibility on future cash flows, as we discussed earlier in this guide. Such tasks are cumbersome when using spreadsheets.

Now, let's address the written part of your electronics repair shop business plan. While it may be less prone to errors, using software can significantly boost productivity. Word processors lack instructions and examples for each section of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they lack automated formatting capabilities.

In summary, while some entrepreneurs may consider Word or Excel for their business plan, it's far from the best or most efficient solution when compared to specialized software.

• Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
• A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for an electronics repair shop. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

• How to write a 5 years business plan
• Business plan myths

Know someone who owns or wants to start an electronics repair shop? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Electronics Shop Business Plan

Free Business Plan Template

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• Fill in the blanks – Outline
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How to Write An Electronics Shop Business Plan?

Writing an electronics shop business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the whole business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Product offering:.

• For instance, you may include televisions, audio speaker sets, laptops, tablets, mobile phones, etc as some of your products.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

Describe your business in this section by providing all the basic information:

Describe what kind of electronics shop you run and the name of it. You may specialize in one of the following electronics shop businesses:

• Retail electronics store
• Online electronics store
• Specialized electronics store
• Wholesale electronics supplier
• Electronic repair shop
• Describe the legal structure of your electronics shop, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future Goals

This section should provide a thorough understanding of your business, its history, and its plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, general consumers, tech enthusiasts, small business owners, or gamers would be an ideal target audience for a commercial electronics shop.

Market size and growth potential:

• For instance, the electronics shop industry was $159.6 billion in 2022, so it is crucial to define the segment of your target market and its growth potential.

Competitive Analysis:

Market trends:.

• For instance, smart home devices have a booming market; explain how you plan on dealing with this potential growth opportunity.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your electronic store business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Electronics shop’s products:

Mention the electronics shop products your business will offer. This list may include,

• Smartphones
• Audio speakers
• Televisions
• Smart home devices
• All other electrical appliances & accessories

Quality measures:

• This may include product authenticity & legitimacy, product inspection & testing, product warranty & guarantee, etc.

Additional Services

In short, this section of your electronics shop plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

• For example, expert staff & technical support, a wide product range, or competitive pricing could be some of the great USPs for a professional electronics shop.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your electronics shop business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your electronics shop, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & software:.

• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your electronics shop’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

• It should include, senior management, and other department managers (e.g. operations manager, technical service manager.) involved in the electronics shop business operations, including their education, professional background, and any relevant experience in the industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your electronics shop services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your electronics shop business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample electronics shop business plan will provide an idea for writing a successful electronics shop plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our electronics shop business plan pdf .

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Frequently asked questions, why do you need a food distribution business plan.

A business plan is an essential tool for anyone looking to start or run a successful electronics shop. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your electronics shop.

How to get funding for your electronics shop?

There are several ways to get funding for your electronics shop, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your electronics shop?

There are many business plan writers available, but no one knows your business and ideas better than you, so we recommend you write your electronics shop business plan and outline your vision as you have in your mind.

What is the easiest way to write your electronics shop business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any electronics shop business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

Can a good electronics shop business plan help me secure funding?

Indeed. A well-crafted electronics shop business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Electronics Repair Shop Business Plan

Start your own electronics repair shop business plan

Tucson Electronics

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Tucson is a start-up business located in the West end of Tucson Arizona. The company specializes in the repair and sales of home electronics, specifically home entertainment electronics, including TV, DVDs VCRs and CD players.

We will target people who place great importance in their entertainment equipment and own higher-end electronics, where repairing them would be more cost effective than replacing them. Many low end VCRs for example, are priced so low, people find it more cost effective and convenient to purchase a new product than to get the existing one repaired.

The company is owned and managed by James Munroe, a retired Navy Commander with a degree in electrical engineering from the University of Texas-Austin. He is a certified electronics technician with various brand companies. He will also employ his son to help with running and growing the business.

1.1 Objectives

Tucson Electronics (TE) is a growth-oriented business. Its ten year goal is to become a regional leader in TV/VCR/home stereo repair, with shops in the Tucson and Phoenix area. With this in mind, the objectives over the next three years for Tucson Electronics are the following:

• Achieve steady growth in sales revenues by year three.
• Achieve local market share (in the Tucson area) of approximately 20% by year five.
• Expand product line to include authorized satellite service installation and new home entertainment electronics sales.

1.2 Mission

The mission of Tucson Electronics is to provide high quality, convenient and comprehensive TV/DVD/VCR and home electronics repair at a low cost. The most important aspect of our business is trust. It is the goal of our firm to have 100% customer satisfaction in regards to quality, friendliness and time to completion, and discover new ways to exceed the expectations of our customers while doing so at the lowest possible cost.

1.3 Keys to Success

In the TV/VCR repair industry a company builds its client base one customer at a time and mostly through established marketing practices (ads, billboards, etc.). With this in mind, the keys to success for Tucson Electronics are:

• High-quality work.
• Attention to professional appearances at all times.
• Knowledgeable technicians that are friendly, customer oriented, and will take the time to explain to customers the intricate nature of our business and our work.
• Maintaining a highly aggressive managerial oversight on costs to provide our services at the lowest price.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Tucson Electronics is envisioned to be the low cost leader in TV/DVD/VCR and home stereo repair for the Tucson area that will also be able to eventually provide satellite TV installation/servicing and new electronics sales, making it the local leader in comprehensive electronic sales/services.

The company will be a sole proprietorship registered in the state of Arizona and owned by Mr. James Munroe. The firm will have facilities on 530 W. Prince Ave. The initial facilities will contain a sales area, repair room in the back of the shop, office space and storage for parts and equipment.

The company is seeking a loan in order to finance the start of operations for the company. The owners will be putting up additional capital of their own as equity.

2.1 Start-up Summary

The data obtained for the start-up table comes from research done in the Tucson area with other small electronics shops who have started their own business, in addition to Mr. Munroe’s previous experience within the industry. Inflation has been taken into account between the estimates of these fellow business owners (and when they started) and the current prices for expensed items. Much of the equipment to go into the facilities such as tools, are currently owned by Mr. Munroe.

Products and Services

Tucson Electronics offers a wide range of services as outlined in the detailed sections below. It is ultimately the goal of the company to offer a one-stop facility for all home entertainment needs, including both sales and servicing. In this way the company can offer greater perceived value for the customer than many other shops which only offer sales or services.

The industry is highly competitive with suppliers having a great deal of power in setting and negotiating the prices of their products and services to repair shops. In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors, buyer power is also very high. Finally, the barriers to entry are moderately low, and the large number of competitors in this field, including substitutes (such as do-it-yourself work) mean that the pricing for such services is very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively or to create higher switching costs through the building of strong business-to-customer ties. It is the aim of Tucson Electronics to create a competitive advantage through both the low cost strategy and by offering greater value through its broader product and service line.

Tucson Electronics will initially have only one factory trained and certified technician in the person of Mr. Munroe. As the company grows and expands, Mr. Munroe will hire trained and certified technicians who are able to prove they have superior customer awareness and interaction. It is the company’s professional people who will fulfill the firm’s contracts and goals. The largest part of the company’s expenses will be in labor costs.

3.1 Product and Service Description

Tucson Electronics provides a wide range of home entertainment repair services. These include:

• Repair and cleaning of  home and car stereos and CB radios.
• Repair and cleaning of TVs.
• Repair and cleaning of VCRs and DVDs.
• Sale of used TVs, stereos, VCRs and DVDs.
• Free estimates on repair jobs.
• Authorized warranty servicing on all major brands of home entertainment systems.
• House calls and free pickup and delivery.

Future products and services that Tucson Electronics will prepare to institute include TV/VCR/DVD rental, satellite TV installation and servicing, sales of new TVs, DVDs, VCRs and stereos, and repair/sale of microwave ovens. Mr. Munroe is also investigating the possibility of offering a new product line of home entertainment cabinets at some future date.

3.2 Sourcing

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A large part of Tucson Electronics enhanced services will be free pickup and delivery of electronics to a person’s home. Mr. Munroe’s cousin, Mr. Thomas Porter, owns Caesar Courier Services, a local company providing pickup and delivery services. Mr. Porter has agreed to provide these services to Tucson Electronics’ clients at discounted prices to Mr. Munroe.

3.3 Technology

The technological revolution in computers has enhanced our abilities to diagnose and repair our clients home electronics. Tucson Electronics will remain on the cutting edge by instituting the use of computer diagnostic equipment in its shop. The company will continue to seek new ways to provide a better service through technology.

3.4 Competitive Comparison

The electronics repair industry is highly competitive. Each company within this field has high labor costs, low margins, and a high intensity of competition.

Suppliers have a great deal of power in setting and negotiating the prices of their products and services to repair shops. This is due to the fact that the suppliers who absorb the greatest amounts of cash from repair shops are large electronic manufacturing companies such as Panasonic, Emerson, Toshiba, etc. These companies are more consolidated than the repair industry, have deeper pockets, an almost limitless number of substitute customers, and finally they are the single most important supplier to the electronic repair industry. Therefore, these companies can set whatever price they wish to. Furthermore, labor is the single most important expense in this industry, and salaries for such individuals are well known and not very flexible.

 In addition, because the customers see the service as undifferentiated and a “commodity” with little value separation between competitors (if they offer a suitable level of quality) buyer power is also very high. Additionally, the costs of our services are not cheap, and buyers are willing to search for the most favorable combination of price and acceptable service.

 The barriers to entry and exit are moderately low in this industry. Switching costs are virtually non-existent and the costs to entry and exist the market are low. The large number of competitors in this field including substitutes mean that pricing for such services are very competitive. The only way to have an advantage in this industry is a low cost leadership principal applied aggressively to all aspects of the business or to build up customer relations to a point where the switching costs are raised.

Based on this analysis, Tucson Electronics will pursue a low cost leadership strategy as its primary competitive advantage. Furthermore, the company will simultaneously build up its product and service line to take advantage of the limited opportunity to create higher switching costs through enhanced value creation and to spread out costs.

3.5 Future Products and Services

Future products and services that Tucson Electronics will prepare to institute include TV/VCR/DVD rental, satellite TV installation and servicing, sales of new TVs, DVDs VCRs and stereos, and repair/sale of microwave ovens. Mr. Munroe is also investigating the possibility of offering a new product line of home entertainment cabinets at some future date.

Tucson Electronics will start implementing these new products or services in the following time periods:

• Repair/sale of microwave ovens (3rd Qtr 2004).
• Satellite TV installation and servicing (3rd Qtr 2005).
• TV/VCR/DVD rental (2nd Qtr 2006).
• Sales of new TVs/DVDs/VCRs (4th Qtr 2006).

The capital investment needed for such expansion will primarily come from the company’s accumulated operating cash account. It is anticipated that some of these product/service expansions that require significant inventory, such as new sales, may require additional cash inflow such as loans. The company will be preparing proposals for various lending institutions in anticipation of this need.

Presently the product that is really driving the electronics repair market is computers. While Tucson Electronics is not currently positioned to take advantage of this situation, it is the long-term goal of Tucson electronics to incorporate computer repair services within the company. Once the firm is able to generate enough cash to retain the services of a computer repair technician, the company will evaluate the viability of such a move. It is anticipated that this service will be offered sometime after 1st Qtr 2007.

Market Analysis Summary how to do a market analysis for your business plan.">

There are approximately 332,500 households in the greater Tucson area, which includes suburbs such as Green Valley, Ina, and South Tucson. Virtually all of these households have TVs, VCRs, etc. Tucson Electronics segments its market into product categories that reflect the estimated number of each electronic device currently being used in the greater Tucson area, since each of these devices may fail at any time and require our services. In addition the growth rate of each product emplaced in the home is based on the current sales growth of each product. Presently, the fastest growing product, in terms of sales, is the DVD player. It is anticipated that the DVD will replace the VCR within the next three to five years as movie rental stores replace their existing VHS movies with DVD. The largest segment is the home and car stereo segment, since usually a household has more than one of these systems. The company will be focusing on servicing all of these systems, and not focusing on one over the other.

4.1 Market Segmentation

Tucson Electronics has segmented the households in the Tucson area as follows:

• Couples with children.
• Couples without children (including Baby Boomers).
• Retired people.
• Students living in multi-unit housing.
• Single people living alone.
• Single people living with roommates.

Tucson will target the following segments.

Middle class couples without children . This group will tend to have a higher disposable income since they have two incomes but do not have the expense of children. They prioritize socializing and spend a fair amount of time entertaining in their home and in the homes of their friends. For this reason they will spend more on their electronic equipment.

Single men living alone or with roommates . This group is not the largest segment for us, but potentially one of the most profitable, since single men tend to prioritize their home entertainment equipment. They will spend a greater percentage of their income on high-quality TV and stereo equipment.

Baby boomers . Baby boomers are reaching the age where their children have left home and they have more disposable income than when their children were young and living at home. They are more tech savvy than the generation before them and appreciate the good things in life. They like to spend time in their homes, now that the children are out of the house.

4.1.1 Market Trends

The market demand for electronics repair has been relatively stable over the past decade. With the advent of DVD players, the market is seeing more highly trained technicians needed. As technology progresses, long-term planners within this market expect to see new opportunities for electronics repair quickly arise. Such devices as cellular telephones, PDAs and other new electronics may have a role to play in the people who have a broad vision in this field.

4.2 Service Business Analysis

Tucson Electronics is fortunate in that Janet Munroe, Mr. Munroe’s wife works in cost analysis for Wal-Mart, one of the country’s best low cost companies. Mrs. Munroe has agreed to furnish cost analysis services to Tucson Electronics for free.

The low cost leadership strategy will not be simple to achieve. Realistically speaking, because of the fragmented nature of the industry, Tucson Electronics will only seek a low cost leadership in the Tucson region for the first seven to ten years of operations. In order to capture this position and achieve its benefits of high market share and profitability, the company is expected to have higher start-up costs and lower profits within the first few years as the company invests in better and more efficient facilities and equipment than most competitors and engages in aggressive pricing to capture market share. The company will rigorously evaluate every aspect of the company to improve efficiency and lower costs. Mrs. Munroe is preparing an analysis of the company’s value chain and cost drivers to identify where costs can be lowered and which aspects of the business Mr. Munroe must focus on. It is expected that management will expend a great deal of energy in cost management and the reduction of things such as marginal customer accounts and marketing expenses. Once in operation, management will concentrate on developing established procedures that will create the most effective service experience. Finally, as part of this low cost leadership strategy, the company plans to vertically integrate to include original sales and broad services that will spread costs and serve all major customer types so as to build volume.

4.2.1 Competition and Buying Patterns

Customers traditionally purchase services in this industry because of effective advertising and reputation. The customers wish to be reassured that they will receive prompt and reliable service and have an understanding service representative will listen to their problems and seek to solve them in a fast and professional manner. Therefore image during the entire service experience is crucial to maintain word-of-mouth marketing and keep a low curn rate. Currently the largest problem that faces small firms is product/service awareness. By the use of effective and widespread advertising, Tucson Electronics expects to be able to capitalize on the weakness of the the “mom and pop” outfits style of passive promotion (such as Yellow Page ads) and to leverage greater product awareness into higher market share. There is no seasonality to this industry although there is some slight increase in servicing sales during the Christmas season.

4.2.2 Business Participants

As stated before, the electronic repair industry is highly fragmented. In fact, there are so many small providers that any company in this industry is facing a purely competitive environment. Approximately 23,700 electronic repair firms exist in the country today. Firms within this field range in sizes from the “mom and pop” outfits such as Dave’s Electronics and Kachina Repair  in downtown Tucson to regional companies like Magnolia Hi-Fi and the national chains such as Circuit City. Not all of these firms are purely repair outfits. In fact all of the larger firms make the majority of their revenue in original sales. It is these companies that have the largest market share and have the opportunity to compete by differentiating on customer service or product/service range.

As stated before, Tucson Electronics will seek a low cost leadership approach in the local Tucson region first. Its goals are not to directly compete with the larger companies who could effectively out compete Tucson Electronics. Instead, the company will seek to outprice the local “mom and pop” outfits and acquire their market share in order to then compete with the regional firms. There are eight such “mom & pop” firms that will be Tucson Electronics’ main competitors in its first few years of operation. They are:

• Dave’s Electronics.
• Kachina Repair.
• Cactus Repair and Appliance.
• Robb’s Repair.
• Sam the TV Man.
• Teletron Service Co.
• Ferndale TV Shoppe.

Strategy and Implementation Summary

The following sections outline Tucson Electronic’s strategy and implementation summary.

5.1 Marketing Strategy

The company has a strong program of marketing its services that include the following:

• Direct mailers.
• Newspaper ads.
• Yellow Pages.
• Referrals through other local businesses.
• Billboards.
• Web banners on local information sites.

The company’s aim is to overcome the traditional small firm’s passive form of advertising and promotion by sending our message to the customer, instead of having the customer look for a firm when they need our services. The share development graph below shows how the company plans to build market share through service awareness, value creation, competitive price, availability, and attractive service experience, all leading to the purchasing of our services. The numbers given in the graph give the estimated percentages of those customers who respond favorably to each marketing step. These numbers multiplied together give us an estimated aggregate market share of approximately 16%. The company expects to achieve this by year four.

5.1.1 Pricing Strategy

Tucson Electronics exists in a purely competitive environment where each firm must be a price taker. In other words, the firm has no ability to affect the market price of its services, regardless of how many TVs/DVDs or VCRs it repairs. In this case, therefore, marginal revenue (the revenue incurred by producing or servicing one more unit) is equal to the price charged. Furthermore, because the demand curve is essentially horizontal, Tucson Electronics can service electronics at total capacity without effecting the price.

What all of this means for the company is that the we must seek to charge our clients at the market price (or lower). Research has shown that the average price is approximately $75 per electronic device. As long as marginal costs do not exceed revenues, the company’s method to maximize short-run profits is to service the various electronic devices at maximum capacity. This means that Tucson Electronics can expect an long-term ROA of approximately 14%.

5.1.2 Promotion Strategy

The company’s promotion strategy will take the form of flyers, direct mailers, price discounts, billboards, radio ads and advertisements in newspapers and yellow pages. TE expects to spend a large amount on marketing in the first two years in order to build up product awareness and service value in the minds of our customers.

5.2 Competitive Edge

Tucson Electronics’ competitive edge lies in its ability to provide quality and fast electronic repair at lower cost than any local small competitor. This positioning of the company provides protection against the power of suppliers by creating more flexibility to cope with increasing costs. In addition, this approach will provide returns even during economic downturns and when other unforeseen problems arise.

Sales Forecast forecast sales .">

The sales forecast is based on the estimated number of electronics the company could service that are currently emplaced in the homes in Tucson. This is conservatively estimated at about two million units. From that number it is assumed that approximately 3% of all those will fail in any year. These two numbers multiplied together give us yearly market demand for our services. With an aggressive promotional strategy, a 10% market share is assumed by year three and multiplied by the estimated market demand. This is then multiplied by the estimated price per unit to arrive at the yearly sales figure assumed for year three (once the company’s marketing efforts have paid off). This number is then decreased by a logical amount to estimate the first two years of revenue.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Mr. James Munroe is a retired Navy Commander with a degree in electrical engineering from the University of Texas-Austin. During his naval career, Mr. Munroe gained extensive experience in project management, engineering, and electronics systems. During his leisure time, Mr. Munroe sought to expand his experiences in electronics by becoming a certified electronics technician with various brand companies. Mr. Munroe is now seeking to leverage this experience into a growth-oriented business that will be able to eventually compete with the largest firms in the industry.

Mr. Munroe will also be employing the services of his son Samuel, who desires to eventually take over the business. Samuel Munroe has been attending a local trade school and is expected to graduate with a degree in electronics in the summer of 2002.

7.1 Personnel Plan

Tucson Electronics’ initial staffing will consist of Mr. Munroe, his son, and two part-time technician trainees. Accounting, bookkeeping, and marketing consulting services will be outsourced. The company’s intermediate goal is to have four full-time, fully trained technicians at the original facility, plus a full-time office manager. However, management has decided to await future developments before determining the best time to bring on such personnel.

Financial Plan investor-ready personnel plan .">

The following sections outline the financial plan for Tucson Electronics.

8.1 Break-even Analysis

The company’s break-even analysis is based on an average company’s running costs within this industry, including payroll, and its fixed costs for such things as rent, utilities, etc. As Tucson Electronics operates as a job-shop, with each task a unique, customized service, it is difficult to estimate revenue per unit and variable costs. The reader must understand that there is a high degree of variance within these estimates.

The reader will also note that the company is not expected to reach its break-even point until the last three months of sales of the first year.

8.2 Projected Profit and Loss

The following table and charts are the projected profit and loss for Tucson Electronics.

8.3 Projected Cash Flow

The following chart and table is the projected cash flow for Tucson Electronics.

8.4 Projected Balance Sheet

The following table is the projected balance sheet for Tucson Electronics.

8.5 Business Ratios

The Business ratios give an overall idea of how profitable, and at what risk level, Tucson Electronics will operate at. The ratio table gives both time series analysis and cross-sectional analysis by including industry average ratios. Industry Profile ratios are based on Standard Industrial Classification (SIC) code 7622, Radio and Television Repair. As can be seen from the comparison between industry standards and Tucson Electronics own ratios, there are some differences. Most of these are due to the fact that there is a very large variance in assets, liabilities, financing, and net income between companies in this industry due to the vast differences in company size. The reader will also note that there is a fair amount of variability between the various years. This is due to the fact that the company is expected to grow quickly and have a large variance in profitability from year to year at first.

Overall the company’s projections show a company that faces the usual risks of companies in this industry and one that will be profitable in the long-run. The company shows that it has higher advertising and start-up costs than other competitors, however management has deliberately overstated costs and minimized profits in order to create a “safe” or “buffer” zone in case of hard times or other unforeseeable problems. Pre-tax return on net worth and pre-tax return on assets appears to be very high, especially within the first two years, however again this is due to the fact that the company will be facing highly variable revenue and costs over the first few years.

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How to Start an Electrical Business - Free Electrical Business Plan PDF Download

Are you considering starting an electrical business and are in need of an electrical business plan? if yes, you'll find this free book to be extremely helpful.

This is a practical guide that will walk you step by step through all the essentials of starting your business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and easy to apply.

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Checklist for Starting a Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

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The Single Most Important Ingredient for Business Success

The first and most important thing you need to acquire in order to succeed in a small business is... knowledge.

Sounds exaggerated? Listen to this...

According to research conducted by Dun & Bradstreet, 90% of all small business failures can be traced to poor management resulting from lack of knowledge.

This is backed up by my own personal observations. In my 31 years as a business coach and consultant to small businesses, I've seen practically dozens of small business owners go under and lose their businesses -- not because they weren't talented or smart enough -- but because they were trying to re-invent the wheel rather than rely on proven, tested methods that work.

Conclusion: if you are really serious about succeeding in a business... If you want to avoid the common traps and mistakes... it is absolutely imperative that you acquire the right knowledge.

"Why Invent Mediocrity, When You Can Copy Genius?"

That's an excellent quote I picked up from a fellow business owner a few years back. What this means is that you should see what is working and try to duplicate it. Why go through all the trouble of inventing something new, that you don't even know will ever work, when you can easily learn from and duplicate something that has been a proven success?

[ Note: One of the BIGGEST mistakes almost all new businesses make is that they WASTE tons of valuable time, energy and money on trying to create something "new", that has never been tested or proven... only to find out later that it was a total loss. Don't make the same mistake! ]

Hi! My name is Meir. I'm the founder and president of BizMove.com, a successful Internet based information business. I'm also the author of numerous books, mostly in the area of small business management.

I've been involved in small business for the past 31 years of my life, as a business coach, manager of a Electrical firm, a seminar leader and as the owner of five successful businesses.

During my career as a business coach and consultant I've helped dozens of business owners start their businesses, market, expand, get out of troubles, sell their businesses and do practically every other small business activity you can think of. You see, I have been there .... done it ... and bought the Small Business t-shirt! -- This free book contains techniques and strategies I've learned during my 31 year small business career.

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Success Tip: Setting Goals

Good management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Be specific. Write down the goals in measurable terms of performance. Break major goals down into sub-goals, showing what you expect to achieve in the next two to three months, the next six months, the next year, and the next five years. Beside each goal and sub-goal place a specific date showing when it is to be achieved.

Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.

Establish priorities. Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by "measurable" goals. If you can’t keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles which may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.

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Here're other free books in the "how to start a business" series that may interest you:

Here's a Sample 'Executive Summary' for a Electrical Business plan :

COMPANY NAME ADDRESS CITY, STATE, ZIP CODE Tel.  Fax: Email:

COMPANY NAME is an Electrical Sub-Contractor, primarily doing commercial, industrial, medical and residential. COMPANY NAME offers value engineering for energy evaluation & efficiency. The purpose of the company's plan is to grow in the fields mentioned above as well as branch out into Nevada, Arizona & New Mexico. COMPANY NAME also wants to further the company's market share in the solar/energy and the service industry.

1.1 Objectives

1. To fund growth of existing business & increase market share of our service business 2. Expand into the field of energy/solar 3. With additional capital the ability to bid larger projects.

1.2 Mission

COMPANY NAME 's sole purpose is to establish a profitable and well managed company while at the same time designing to please the local residents with excellent service in California.  COMPANY NAME’s near future plans are to grow the company's electrical contracting business in California and other states such as Nevada, Arizona and New Mexico.  The company will seek to provide these services in the timeliest manner and with an ongoing comprehensive quality control program to provide 100% customer satisfaction.

1.3 Keys to Success

1.  Servicing and maintaining our existing client base 2.  Having employees that understand and implement our high standards 3.  Reliability and communication with clients from beginning of each job to end.

COMPANY NAME is in the city of Orange and has been in the county of Orange since 1994, servicing Los Angeles, Riverside, San Bernardino and San Diego counties. We provide electrical contracting services to a wide range of clients, including owners and general contractors, mainly in the medical field. COMPANY NAME's current corporate office is at [INSERT ADDRESS].   The company's corporate office is a 4,650 sq ft concrete tilt up building. This corporate office houses all administrative operations, with warehouse space used for inventory and service vehicles. All of the work is done at many off-site locations.

2.1 Company Ownership

COMPANY NAME is a privately held C Corporation where OWNER’S NAME is president & secretary and CO-OWNER’S NAME is Vice President.

2.2 Company History

In 2006 and 2007 COMPANY NAME experienced a decrease in sales due to California budget cuts for the company's voice and data division that had provided services to Employment Development Departments.   The decrease in sales was also due to existing clients who were very slow in paying for services rendered.  COMPANY NAME had also made the decision to focus more on the medical field and their primary client base. The company had cut ties with three general contractors and proceeded to establish new contacts within the medical field. The year of 2008 was a great year and COMPANY NAME was on track to double sales; however the economy was starting to slow. 2009 was a respectable year, however, again, due to the economy COMPANY NAME re-evaluated again to expand into solar/energy industry.

Table: Past Performance

3.0 Services

COMPANY NAME 's products are: 1) Design build which is based on a per square foot price. 2) Contract work which is specific to a certain set of blueprints/drawings. 3) Service work that is based on an hourly rate.

COMPANY NAME will focus on four main markets within the industry such as: MEDICAL This field is a viable source of business now and due to ever changing technology a great source of future business that will sustain us long term. SERVICE There will always be a need for service and this is an area that we have never taped into and believe there is great potential. COMMERCIAL/INDUSTRIAL This has been the company's main focus; COMPANY NAME has built great long term relationships with building owners who now look for our guidance in directing their energy improvements. SOLAR/ENERGY We feel we always need to look at new trends and stay ahead of change in our approach to long term sustainability.

How to Organize Paperwork for Business

We must all be efficient and productive in today's business world. Being organized helps you handle tasks quickly so that you have more time and space to do what you truly want to do.

1. One-time mail system.

Have an In Box on your desk for new mail/information. Look at your mail once a day. Review each piece of mail once to decide whether to do it, delegate it or dump it. If it adds value to your business or is required for doing business, do it or delegate it. If not, then dump it. If you keep it, then categorize it using the A, B, C system. Use your time wisely.

2. Categories for performing your work.

Set up desk trays labeled A, B, and C. Items in category A must be handled today. Category B items must be handled this week. Category C items are generally filing that must be kept because they have some value, such as invoices, tax returns, and statements.

3. Prioritize your work within categories A and B.

Sort the categories into 1, 2, and 3. A1 must be done NOW, it is "hot" or "urgent." A2 can be done this AM. A3 can be done by the end of the day. B1 is done on Monday. B2 done by Wednesday. B3 done by the end of the week. Make the decision once, then do the work.

Set a day and time each week for filing. Don't let it stack up. Give yourself space to work.

5. Purge your files on a regular schedule.

For example, purge files every six months. Send these documents to storage. This gives you more space to work.

6. Storing records.

Store documents in boxes. Mark the contents of each box. For instance, clients A-F2013. Mark the destruction date on the box, D = June 02. Base your destruction date on the legal requirements for your industry.

7. Toss out stored documents on a regular schedule.

For example, two times per year, visit the storage area and remove boxes that are beyond the destruction date. Depending on your industry, they may need to be shredded rather than put in the trash.

8. Color code your records.

For example, clients with first names beginning with A-F are in Orange folders; G-K Yellow; L-P Blue; Q-Z Green. This will save you time when you are searching for a file. You can also apply this to AP, AR, Payroll, and Taxes. This can also be done by year. For example, 2012 AP is blue; 2013 AP is purple.

9. Hot files.

Put a red cover on files that you consider "hot." These could be urgent projects, legally or financially sensitive, or important VIP clients. Keep these visually at your fingertips.

10. Use out guides.

If you work with other people and share files, create a check-out system so that files are not lost. Put the file name, taken-by name, and date on a card and place it in an out guide box. When you can't find what you want, check the box to see if your co-worker is using the file. Be sure to remove the card from the box when you return the file.

Copyright © by Bizmove Free Business Guides. All rights reserved.

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The Sunday Read: ‘What I Saw Working at The National Enquirer During Donald Trump’s Rise’

Inside the notorious “catch and kill” campaign that now stands at the heart of the former president’s legal trial..

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At the center of the criminal case against former President Donald Trump in Manhattan is the accusation that Trump took part in a scheme to turn The National Enquirer and its sister publications into an arm of his 2016 presidential campaign. The documents detailed three “hush money” payments made to a series of individuals to guarantee their silence about potentially damaging stories in the months before the election. Because this was done with the goal of helping his election chances, the case implied, these payments amounted to a form of illegal, undisclosed campaign spending. And because Trump created paperwork to make the payments seem like regular legal expenses, that amounted to a criminal effort at a coverup, argued Alvin Bragg, the district attorney of Manhattan. Trump has denied the charges against him.

For Lachlan Cartwright, reading the indictment was like stepping through the looking glass, because it described a three-year period in his own professional life, one that he has come to deeply regret. Now, as a former president faces a criminal trial for the first time in American history, Cartwright is forced to grapple with what really happened at The Enquirer in those years — and whether and how he can ever set things right.

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Watch: A small Australian town was treated to a rare hybrid solar eclipse

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